Soft Core Collections vs. Continued Collections

[DSFA]

I received a notice from a CA in January from a medical bill that I let go. It does not appear that the CA is as of yet, reporting to the CRAs as I can't find anything on any of the three reports. 

Upon going to the CA's website, they work only with healthcare facilities and offer as one of their services "Soft Core Collections" (no jokes please LOL) and "Continued Collections. According to the description of their Soft Core Collection Services:

Soft-Core Collections Highlights Include:

• Not a letter service - patients are given the opportunity to resolve outstanding balances prior to continued collections
• Exhausts all collections efforts without the added penalty of credit reporting, interest and legal proceedings
• Services are customized to meet specific requirements of the healthcare organization

Continued Collections Highlights Include:

• Skip tracing applications and tools that help locate patient debtors who fail to provide accurate demographic information
• Customized correspondence
• All claims Re-billed claims as needed
• Reporting to Experian (formerly TRW) and TransUnion
• Suits filed on behalf of client as needed with written client authorization

If I'm reading this correctly, they don't report until they move it to a continued collection status, which apparently I'm not at yet as they aren't reporting. Am I reading this correctly and it should be safe for me to at least call them and talk about payment? So far, I have only received one statement from them. That being sent in January of this year.

[Rkalynsmith]

Thats what it sounds like to me. I would get something in writing stating that they won't report if you pay off the balance or make the payments you owe ontime.

[guiness56]

What they do is commonly called pre-collections.  They attempt to get you to pay by a certain time and if you do that is the end of it.  No reporting.

If you don't, they will do a full blown collections.  Reporting to the CRAs, phone calls, dunning notices etc.

[RobertEG]

"Safe" may be a bit of an overstatement.

They are affording the consumer the opportunity to pay without credit reporting.

However, if your contact places conditions upon paymenet other than a full PIF, such as a settlement for less offer, that may be a trigger to move to their next stage.

Offer not to report is significant, and if the debt is not huge, you might wish to consider a PIF.