Collections Account Past Statute of Limitations

[Anonymous]

Hello, everyone! 

4 1/2 years ago, I suffered an injury that required physical therapy. I was insured through my employer at the time. I paid my co-pay each visit and my insurer took care of their portion. I have NEVER received any bills or notification of outstanding charges from that provider. 

In 2018 and 2019, I began to receive communication from EOS-CCA (a debt collection agency) regarding outstanding charges. Each time, I sent a response (requesting validation of this supposed debt) via certified mail. They never responded to either of those requests. 

They recently contacted me via phone. The only reason I even answered that call is because I was awaiting a call from another company -- and thought that they were going them. In any event, the representative attempted to get me to commit to a payment plan and even asked me to verify key pieces of information like my DOB and last 4 digits of my social. I did NOT. I went on to inform them that I am unaware of this debt. 

The statute of limitations on medical debt in my state is 4 years, so we are a few months outside of that. My concern is two-fold: the representative discussed the details of the procedures that I allegedly had, possibly making it a HIPAA violation. My last concern is that this company may try to add this supposed debt to my credit reports. To date, it is not listed on any of them. Any suggestions on how I should proceed with this? 

[RobertEG]

Did they ever send a dunning notice?  That is the formal collection notice that advises you of your debt validation rights.

Was your debt validation request then sent within 30 days after that notice?

If so, then their current communication with you without first having provided the requested debt validation would be a violation of the cease commmunication bar that was imposed under FDCPA 809(b) based on a timely DV request.

As for credit reporting, expiration of SOL does not bar credit reporting.  It establishes a bar against filing a suit seeking a court judgment on the debt.

As for how to proceed, I would begin by contacting your medical insuror and attempting to obtain proof that the debt was paid by insurance.

Under new CRA policy, and collection based on debt ultimately paid via insurance must be removed from a consumer's credit report.

That will prevent any addition of a collection.

[Anonymous]

Thanks for your response (and advice), Robert! They sent a dunning letter in 2018 containing the name of the provider, dates of service and the dollar amounts. I immediately sent my response via certified mail. They never responded. The same exact scenario occured in 2019. 

In June of 2020, they sent me a "settlement" offer disguised as a check. I did not respond to it, as they had never validated this debt as I had requested in 2018 and 2019. 

The representative with whom I had spoken via telephone, attempted multiple times throughout the conversation, to get me to validate the information they had. They also asked me to provide my DOB and other personal information. They attempted to get me to agree to different payment plans. I believe that it was an attempt to revive the debt. 

The only time that they attempted to verify this debt was over the phone. 

[RobertEG]

If you received a dunning notice and sent a request for debt validation within 30 days thereof, then they were under no period for or obligation to send the requested validation, but were then under a cease collection bar (FDCPA 809(b)) until they first provided the validation.

REsponse to a DV request must be in writing, and oral communications are barred until then.

They are thus in violation of the FDCPA for each communication.

You can file a civil action seeking damages.

[Anonymous]

This is good to know! I HAVE filed a complaint with the CFPB. Thanks again! 

[Anonymous]

@Anonymous 

Your smart for not talking to them. I have more respect for the devil himself than Collection Angencies. Remember, if there lips are moving they are lying. They are trying hard to get you to either acknowledge the debt or make a payment/agree to pay so they can restart the SOL and sue you. Don't fall for it. 

They are ruthless and will never stop. I had a buddy who worked for a Collection Agency a few years back and he told me horror stories how they would lie, illegally steal money from peoples accounts, or get them to make a "one dollar payment" so they could restart the SOL on very old debts then they would instantly sue the individuals. It's sad. 

[spiritcraft1]

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@Anonymous wrote:

@Anonymous 

Your smart for not talking to them. I have more respect for the devil himself than Collection Angencies. Remember, if there lips are moving they are lying. They are trying hard to get you to either acknowledge the debt or make a payment/agree to pay so they can restart the SOL and sue you. Don't fall for it. 

They are ruthless and will never stop. I had a buddy who worked for a Collection Agency a few years back and he told me horror stories how they would lie, illegally steal money from peoples accounts, or get them to make a "one dollar payment" so they could restart the SOL on very old debts then they would instantly sue the individuals. It's sad. 

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+1  It is a hideous system.  Especially debt buyers as the OC gets pennies on the dollar and the debt buying scum will typically go to any despicable length to collect.

[Remedios]

If person doesn't owe the alleged debt, there are avenues for them to rectify the situation, as mentioned above by @RobertEG .

If one owes the debt, someone will try to collect on it, regardless of how much time has passed. Additionally, if debt was satisfied early on, there would be no reselling of the debt later. 

It's still the money one owes to someone.

Sure, some CAs are pain and engage in some shady practices, others have decent practices and stay with confines of the law, but none of that absolves people from paying their debts. 

If you cannot leave grocery store without paying, why is it okay to stop paying phone bill, power bill, credit cards?

With all that said, I firmly believe medical collections have no place on CR.

Everything else is fair game. I'd be a lot richer if I could pick what I want to pay, and whom I want to leave holding the bag.

[Anonymous]

@Remedios 

I never once said it was NOT okay to not pay your bills. My comments were in regards to the post. 

Everyone needs to pay there bills in full and on time. However, most of what collection agency's do is illegal. They are playing a game of odds. They know the average person will not sue them or even know there rights under federal law. That's the problem I have. 

I have seen tons of cases of debts older than 20 years and they get a person to make a $10 payment then that payment instantly restarts the SOL in most states then they can sue for the full amount of the 20 year old debt plus ALL intrest that has occurred. I have seen cases of people that originally owed a $300 balance and 20 years later got hit with a $3000 lawsuit because they made a payment rhat reset the SOL. Debt collectors and collection agencies are lying the moment they strt talking. 

[Remedios]

I'm not sure what  OPs situation has to do with zombie debt. It's still in SOL, and still in the time period where reporting would be allowed if debt was legitimate. 

As far as restarting SOL and making payments on zombie debt 20 years later, that's self inflicted wound. 

First by believing that time erases the debt. It doesn't. Regardless of SOL and seven year reporting period, debt legally remains. 

In other words, don't wait 20 years to pay collections. If the person in your example paid $25 per month while debt was still with the OC or first CA, they would have been done in a year. 

Some collection agencies are without a doubt unscrupulous. Best way to avoid them is never allowing it to get there in a first place.