Designed Billing Solutions Questions (Medical Billing)

[PayYouNever]

Hello Wise Ones,

I missed an opportuntiy to pay off a $285 medical bill, and went to collections in April of this year. I currently have the funds to pay off the debt, however, I don't want the Negative TL on my report.

Designed Billing just called me looking to collect, and they indicated that they're charging me interest on the outstanding balance. How are they able to do that since there was never any interest associated with the original hospital account?

Second, is the smart play to send a copy of a money order for the in-full balance to the OC and request they buy back the debt from Designed Billing? And then I overnight them the money order? I'd get all of this in writing.

Once the OC has been satisfied, I can DV Designed Billing and have the negative TL removed from my CR?

Thanks,

Chris

[RobertEG]

Deletion of a reported collection is not required if you pay the OC.

The debt collector is requried to delete their collection only if the OC terminates the assigned collection authority prior to your payment of the debt.

Has the OC sold the debt to the debt collector, or did they only assign them collection authority, and they still own the debt?

If you simply pay the OC and then send the debt collector a DV request, they can ignore the DV.

A DV has no period for or requirement to respond.  With the debt discharged, they can simply trash any DV. 

The normal process for seeking deletion of a collection is to make a pay for deletion offer directly to the debt collector.

If they agree, you then have a legal contract with the reporting party for their deletion of their own reporting.

As for their attempt to assess interest, FDCPA 808(1) provides:

"A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:

(1) The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law."

[PayYouNever]

RobertEG -- thank you for the information.

How do I find out if the OC sold the debt or only assign the debt? The initial letter I have from the CA says, "We represent the billing of the OC... Your continued failure to resolve your account may result in its assignment to a collection agency.

So your recommendation is to a) send a PFD letter and b) in that same letter indicate that they're in violation of the FDCPA?

[Anonymous]

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@PayYouNever wrote:

RobertEG -- thank you for the information.

How do I find out if the OC sold the debt or only assign the debt? The initial letter I have from the CA says, "We represent the billing of the OC... Your continued failure to resolve your account may result in its assignment to a collection agency.

So your recommendation is to a) send a PFD letter and b) in that same letter indicate that they're in violation of the FDCPA?

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That statement indicates that the OC still owns the debt, and the CA is a "hired gun".