Recent collection letter received

[creditmeister]

Hi folks. I received a letter two day ago from LCA collections, a division of Labcorp, for an unpaid medical bill. I am able to pay in full, but I want to check here first to make sure I go through the proper procedure to prevent this from negatively impacting my credit score. What is the best way to handle this situation?

Thanks so much.

[hoping2rebuild]

IMHO if I could pay in full and know that it is my Medical bill I would PFD

[llecs]

Since they aren't reporting, I'd pay LabCorp. DW had the same with the same CA too and paid LabCorp and never heard from either again. I don't think I ever bothered sending a DV to the CA. Also, IME, LabCorp wouldn't bill our insurance for whatever reason. Something to check on. You can always file a claim with your insurer if that's the case.

[Juan123]

make sure they aren't reporting to your CR. If they aren't and aren't planning to, pay it in full and ask for a letter stating it's been paid in full and the date it was paid.

[creditmeister]

Thank you all for your help. Ilecs, very helpful to know someone else on here has dealt with this.

It seems that the LCA letterhead is designed to spook people into thinking they are an outside CA whereas in fact it is a subsidiary of LabCorp. It worked on me. Upon closer reading of the fine print in the demand letter they sent, it says if payment is not made soon they will have to turn the matter over to an outside CA.

Thanks again!

[llecs]

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@creditmeister wrote:

It seems that the LCA letterhead is designed to spook people into thinking they are an outside CA whereas in fact it is a subsidiary of LabCorp.

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I didn't know that....something new here everyday. Hopefully there won't be a next time in our case, but good to know.

[RobertEG]

If they send you a communication from their own internal debt collection branch that uses any name that carries with it an indication that a third person is collecting on the debt, then they legally become a "debt collector" pursuant to FDCPA 803(6).

Having become a "debt collector" under the statute based on their actions, that then affords you the right to use any provision of the FDCPA in dealing with them.

Thus, while you normally could not, for example, send a DV to an OC and compel them to cease collection activities before providing you validation, you could now exercise that right.  They cant convey to you an implication of third party collection and also avoid fallling under the debt collection practices provisions of the FDCPA.

[creditmeister]

Interesting Robert. The letter states "Your account is past due...It is not our wish to have this matter sent out to collections. However, if this bill is not satisfied immediately, it will be listed as a severely delinquent account and outside collections activities will begin".

Thus it would appear a third party is not collecting on the debt, yet. However, the letterhead leaves some ambiguity as to whether LCA collections is a third party CA or not.

In any case, I have PIF over the phone. I have a confirmation number and they will mail a receipt as well. I'm hoping that will resolve the issue.

[Anonymous]

I got a similar letter from LCA.  I was out of town for a few months during the summer because I recently got engaged.  Luckily a family member went ahead and made a partial payment. 

I think if it does show up as a TL then I'm going to go through the HIPPA process and send otu GW letters. But it will be a pain. 

I went ahead and went online and paid the remaining amount in full. 

I'm hoping this will be the end of it.

[MarineVietVet]

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@Anonymous wrote:

I got a similar letter from LCA.  I was out of town for a few months during the summer because I recently got engaged.  Luckily a family member went ahead and made a partial payment. 

I think if it does show up as a TL then I'm going to go through the HIPPA process and send otu GW letters. But it will be a pain. 

I went ahead and went online and paid the remaining amount in full. 

I'm hoping this will be the end of it.

 HIPAA only works if you have first paid the OC in full. This won't work with a CA.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

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