Doctors office wants more than collection agency for same bill

[Anonymous]

I have one last item on my credit report to pay off.  It is a $1200 collection for dental work in 2011 that my insurance did not cover.  I called the dentist's office and asked if there was anything they could do to help me out and they said they can not once it goes to collections.  The representative then advised I could pay them and it was $1600.  When I asked about it being more than the amount on my collections account she advised they were collecting the $400 charge the collection agency charges them for having the account and that they could charge it.  

My question is, if I pay the collection agency can the dentists office then send me a bill for the $400?  I'm trying to pay everything off and buy a house. (So far I'm up to a 729 from a 515)

[IOBA]

Just my opinion...

If you pay the collection agency in full for the debt - whatever the collection agency and you agree upon,  then the dentist accepts the account as paid in full.  The dentist office should not send you an additional bill for $400.

The dentist office and the CA may have an agreement that if the client pays the dentist office instead of the CA, then the CA gets $400 fee to compensate them for their collection efforts.

But usually when an account is turned over to an inhouse CA, then either the creditor or the CA can collect.

When the account is sold to a CA, then the creditor can not collect on the account.

It sounds like the dentist office sold the debt to the CA for $400.  Sounds like they are willing to buy it back for the $400 they sold it for, if you pay the fee.

Just pay the CA.  Leave the dentist office out of it.  Ask the CA to delete from CR if they are reporting.

[Anonymous]

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@Anonymous wrote:

I have one last item on my credit report to pay off.  It is a $1200 collection for dental work in 2011 that my insurance did not cover.  I called the dentist's office and asked if there was anything they could do to help me out and they said they can not once it goes to collections.  The representative then advised I could pay them and it was $1600.  When I asked about it being more than the amount on my collections account she advised they were collecting the $400 charge the collection agency charges them for having the account and that they could charge it.  

My question is, if I pay the collection agency can the dentists office then send me a bill for the $400?  I'm trying to pay everything off and buy a house. (So far I'm up to a 729 from a 515)

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Most likely when you contact the CA to make payment, they are going to tack on that fee anyway....

[RobertEG]

Assuming that the debt collector does not own the debt, they are acting as the agent of the creditor.

If they agree to an amount and clearly state that it is full satisfaction of any and all debt, then the creditor cannot attempt to collect any additional amount.

I would take the offer from the debt collector, under condition that they acknowledge it as full satisfaction of the debt.

[Anonymous]

$400 is 30% of the original balance $1200. 30% is a normal rate for the collection ageny to collect the debt. Basically, the CA collects $1200 from you, but only $800 will actually be forwarded to the dentist office. Seems like dentist is trying to collect FULL amount by charging YOU what the CA would charge THEM (dentist) for collecting so in the end, they would still get the FULL amount. I wouldn't be surprised if they DID send the $400 bill to you if you end up paying the CA. It's not right, and I don't think it's legal, but o agree with the others. If you pay CA at the rate of the agreed upon amount (1200), that should be sufficient enough to clear debt as paid in full. What's showing on your CR? $1200 or $1600? I bet it's $1200 since the CA is most likely the one actually doing the reporting.

[Anonymous]

The amount shown on my CR is the $1200.  I went ahead and entered into an agreement with the CA.  They advised the full payment amount is the $1200, and they would send me paid in full documentation in case anything came up later.