I have around 35k in credit with 30% UTI. Everything is in good standing, 100% on-time payments, don't pay minimums, etc.
I have a medical bill that I've been paying $25/mo on for two years (a $1600 bill, and in retrospect had I known it would come to this I would've just paid it, but the charges are erroneously inflated and I debated with them for months, and in the end decided I would pay them the absolute minimum I could for being dishonest and leaving me with no recourse--probably not the best decision--lesson learned). After a year of paying this to the hospital, they transferred my account to RMP Waco (some type of collection agency that didn't report and honored my monthly payments as long as I didn't miss one, and I haven't).
Today I received a letter from Radius stating that the debt was now there's. I called to get some general information and it appears they're right. The only options given to me are 3 installment payments or 1 flat payment. I didn't inquire about PTD or anything like that because I would do that through certified mail, correct?
I should also note that RMP Waco is supposedly about to collect their monthly installment on Monday (falls on the 15th, so if it posts it will be Monday). Radius' letter to me is post-dated June 8th. If RMP Waco retreives money out of my account after my debt was bought and is now owned by Radius, can I force RMP Waco to repay me that money, or would the new balance transfer over to Radius as they make the transition?
I don't want this account showing up on my credit report and it hasn't, but I fear it may with Radius. If I have to pay off the account in a lump sum I'll move some things around, maybe take advantage of a BT I was offered a couple of weeks ago or cold cash. I just don't want to risk this account showing up from a collection agency on a CR even if it's 100% on-time payments and PIF.
Thanks for any advice.
Do you have a written contract with the creditor that clearly defines agreed repayment terms?
If so, that contract would be legally assumed by the new owner, who would be bound by its terms as long as you dont become in default of that separate repayment contract.
Unfortunately it was all verbal, but I have two years worth of automatic payments made to both the hospital and RMP Waco if that accounts for anything. They send me a letter every month before the automatic payment, and I received that letter this month but I'll find out Monday if they charge me.
My main concern with this account is its reporting to CRA's. It never has and I don't want it to start. Wishful thinking has me believing if I pay the CA in full, within the first 30 days, it doesn't get reported, and if it does I can always try letters of goodwill stating that I never missed a payment or paid less than a previously agreed upon amount. I'm beginning to wonder if the best course of action is pay>cross fingers>goodwill letters if needed.
I'll try contacting RMP Waco and the OC tomorrow to see if they'll assume responsibility for the debt and pay them instead so I can bypass the CA, but unless that happens I think paying the CA as quicky as possible is my best course of action.
I'll update this thread when I obtain more information tomorrow to help others that might be in a similar situation.