Fight a Collection - Steps to follow

[Anonymous]

I'm looking on this forum for a post that gives some general steps to follow when fighting a collection. I have read that once you receive a letter for a collection, you should ask for a debt validation. Should this be in writing or over the phone? What do you do if they don't send the validation? Can they post it to your credit? Etc...

What I have is a collection letter from an ambulance bill that my insurance didn't pay due to them thinking it was a pre existing condition. After it was proven that it wasn't a pre existing condition, they paid everything but the ambulance bill. When I was contacted about this, I talked to my insurance and they told me to tell them to resubmit the bill to them and they would cover it. They never resubmitted it to the insurance company and I never heard from them again until 2 years later I get this collection in my mail from a collection agency.

What are the steps I should follow to get this taken care of before it goes on my credit. I have worked so hard to get my credit fixed from my irresponsible days as a teenager and now I have this which I don't actually owe! My insurance company at the time was supposed to pay it.

[Anonymous]

Come on... plenty of people have gone through this before? Even a link to a previously discussed thread will be fine. I have searched and can't seem to find anything that lays down what needs to be done and what to expect/accept.

[FICOfit]

Well, first off, if your insurance didn't pay it, then you do, in fact, owe it.  This led to the position you're in now. 

Is the collection letter from a CA or the OC (ambulance company, in this case).  Is this the initial dunning letter from a CA (the one that states "you have 30 days to dispute the validity of this debt" )   Also, it would be helpful to know the amount, DOFD, DOLA and what the SOL is for your state, etc.

If it is not being reported yet and still with the OC, then I would just pay it.  It's unlikely they will report after they receive $$.

If it is with a CA, then the SOL question becomes important.  If outside of SOL, I would DV them.   Some will tell you to DV them even if it's withing SOL.  I am hesitant to do this because this could stir the hornets nest, so to speak, and you may be looking at a lawsuit.  Again, if they are not reporting, I would pay it as it's unlikely they will report once they receive $$.

Message Edited by argonne on 03-31-2008 01:03 PM

Message Edited by argonne on 03-31-2008 01:04 PM

[Anonymous]

$524 is the total amount due.

However, I'm not sure if you read all of what I mentioned above because it seems like you're saying that I still owe this debt.

Yes, my insurance didn't pay it... however, they didn't pay it due to thinking it was from a pre existing condition. When it was proven that this wasn't a pre existing condition, the insurance company paid all but skipped the ambulance bill for some reason. When I asked the insurance company about this, they told me to have the company resubmit the claim and they would pay it, no problem. When I told the original company to please resubmit the claim, they never resubmitted it. They just turned it over to collections 2 years later.

[Anonymous]

I'd submit the bill to the insurance company directly.  Put pressure on them to get it sorted out quickly.

[Anonymous]

Hi! There is a letter floating around here somewhere that is a DV letter but also states in the letter: in spirit of compromise I will pay this balance in full if you do not report to all 3 cra's. I will try and find it for you.. Happydays might have it..

 It might be a PFD letter...

Message Edited by scramblingin2007 on 03-31-2008 02:00 PM

Message Edited by scramblingin2007 on 03-31-2008 02:00 PM

[Anonymous]

I found it: You will need to change a few things because they have not reported it to the cra's, you want to make sure they do not report it.

Below is an example PFD (Pay for Delete) letter you can use.

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Collection Agency
1212 Maple St
City, State Zip

Re: Collection Account for Original Creditor Account #: 00000xxxx

Amount: $25.00

To Whom It May Concern:

This letter is to inform you that the validity of this debt is disputed. I am not sure of the account number, as I have never heard from you regarding this account. The account number I have is the one listed on my Experian credit report – which omits the last few digits.

In the spirit of compromise, I am willing to pay this account IN FULL (or settlement percentage) if you agree to immediate deletion of this account from any and all credit reporting agencies (Equifax, Experian and TransUnion). The purpose of this settlement is merely to have this item removed from my credit files. It is not to be construed as an acknowledgment of liability for this debt in any form.

If you agree to the terms and accept this agreement, certified funds for the settlement amount of twenty-five dollars ($25.00) will be sent to Collection Agency in exchange for full deletion of ALL references regarding this account from my credit files and full satisfaction of the debt. As certified funds will be used for payment, there shall be no waiting period regarding the deletion of this account from the credit reporting agencies.

Collection Agency agrees to delete ALL information regarding this account from the credit reporting agencies WITHIN TEN CALENDAR (10) DAYS following receipt of payment as specified above and will not discuss the terms of this settlement with anyone, excluding your client on this account. If contacted by any third party, including credit-reporting agencies, Collection Agency will not acknowledge that any settlement offer was made, accepted or executed and will, in fact, deny knowledge of any such account.

If you agree to the above terms, please prepare a letter on your company letterhead explicity agreeing to the same terms as the above settlement offer and have it signed by an authorized representative of Collection Agency. It will be implied that this letter shall constitute a legally binding contract, enforceable under the laws of my state.

Your response must be postmarked no later than 15 days from your receipt of this settlement offer or this offer will be withdrawn and I will request full validation of this alleged debt, as provided for by the Fair Debt Collection Practices Act.

Please address all correspondence regarding this account to:

You
123 Any Street
City, State Zip

[Anonymous]

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scramblingin2007 wrote:

Hi! There is a letter floating around here somewhere that is a DV letter but also states in the letter: in spirit of compromise I will pay this balance in full if you do not report to all 3 cra's. I will try and find it for you.. Happydays might have it..

 It might be a PFD letter...

Message Edited by scramblingin2007 on 03-31-2008 02:00 PM

Message Edited by scramblingin2007 on 03-31-2008 02:00 PM

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Ummmm, I think you're confusing DV and PFD, which are two entirely different animals.

I really think the OP should hammer the insurance company.  Why would he offer to pay a bill if he's not responsible for it?

[Anonymous]

No, I'm not confusing the dv and pfd. If he submits it to the insur co..that will go through red tape and loopholes, it may never get paid and in the meantime his credit will suffer. I say get it done with now, before they report it.

[Anonymous]

How about DVing and pursuing the insurance company at the same time?  The PFD is the last resort.

At this point, OP doesn't know if this CA even owns the debt.  Make them prove it before rushing to pay them.  If he DV's within 30 days' receipt of the CA's letter, they have to stop collection activity, which includes reporting to the CRAs.