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If first mention of past due balance is 6 months after Date of Service, when is DOFD?

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Re: If first mention of past due balance is 6 months after Date of Service, when is DOFD?


@RobertEG wrote:

 

You have a ...

 

...by a court.

 


Robert,

 

If I understand you correctly, "We are requesting that you make full payment on your account balance within 10 days of the above date" in the August 1 statement does not necessarily establish a due date and therefore does not establish a DOFD, correct?

 

Do you agree the statement dated September 1, 2013 reporting  the $300 balance is past due establishes the DOFD on or before September 1, 2013?

 

Bacak to the August 1 statement... Do you agree "We are requesting that you make full payment on your account balance within 10 days of the above date" does not preclude the DOFD from being prior to August 1, 2013? 

 

Thanks!

 

 

 

Message 11 of 19
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Re: If first mention of past due balance is 6 months after Date of Service, when is DOFD?

Here is a practical example 

You have a physician visit. You get the statement. It has a due date. Anything past that due considered  delinquent account, except provider does not send you to collections right off the bat. They want their money without collection agency taking a percentage. So, next statement is due immediately, just like when you dont pay your credit card in full and you have trailing interest. Same thing applies here. After the first statement, subsequent ones do not give you additional time to pay. It's past due already, and due immediately. 

In order to figure out (loosely) when the account became delinquent, you'd need the first statement. 

 

In those rare instances when we send accounts for collections, they want to know when the account became overdue. Here is the kicker. We can say it was 30 days after the statement, 90 days or any day after that initial statement became overdue.  There is really no rule, other than provider's tolerance and willingness to send account for collections. However, we are obligated to provide them that date. 

 

 

If that date is not included in free annual credit report, there is no way to guess how that particular provider treats collection accounts. 

Message 12 of 19
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Re: If first mention of past due balance is 6 months after Date of Service, when is DOFD?

My opinion.....

 

A statement requesting payment be made within 10 days is not an explicit statement of due date, and does not legally consitute an admission by them of any DOFD.  However, it could be interpreted as an implied statement of due date.  

That is why we have judges....

 

A statement that the account is past due as of Sept 1, 2013 would reasonably be interpreted that the DOFD was on or before that date.

 

Regardless, a creditor is required to explicitly and expressly report a DOFD only if they have reported a charge-off, and a debt collector is required to separately and explicitly obtain and report the DOFD, both no later than 90 days after reporting of a charge-off or collection.

See FCRA 623(a)(5).

They are not required to report their determination of DOFD unless or until either a charge-off or collection is reported, and thus the determination of a  DOFD may not necessarily of record in your credit file.

 

 

Message 13 of 19
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Re: If first mention of past due balance is 6 months after Date of Service, when is DOFD?


@Remedios wrote:

Here is a practical example 

You have a physician visit. You get the statement. It has a due date.Please excuse my lack of understanding.  Question: When the physician sends me a statment with a due date, is the DoFD the due date plus one day? If so, is the DoFD immutable? ] Anything past that due considered  delinquent account, except provider does not send you to collections right off the bat. They want their money without collection agency taking a percentage. So, next statement is due immediately, just like when you dont pay your credit card in full and you have trailing interest. Same thing applies here. After the first statement, subsequent ones do not give you additional time to pay. It's past due already, and due immediately. 

In order to figure out (loosely) when the account became delinquent, you'd need the first statement. 

 

In those rare instances when we send accounts for collections, they want to know when the account became overdue. Here is the kicker. We can say it was 30 days after the statement, 90 days or any day after that initial statement became overdue.  There is really no rule, other than provider's tolerance and willingness to send account for collections. However, we are obligated to provide them that date. 

 

If that date is not included in free annual credit report, there is no way to guess how that particular provider treats collection accounts. 


Remedios,

Thank you for your patience and for sharing your time and expertise with me.

JWK

Message 14 of 19
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Re: If first mention of past due balance is 6 months after Date of Service, when is DOFD?


@RobertEG wrote:

My opinion.....

[SNIP]

 

Robert,

Thanks!

JWK

 

 

Message 15 of 19
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Re: If first mention of past due balance is 6 months after Date of Service, when is DOFD?


@JWK wrote:

@Remedios wrote:

Here is a practical example 

You have a physician visit. You get the statement. It has a due date.Please excuse my lack of understanding.  Question: When the physician sends me a statment with a due date, is the DoFD the due date plus one day? If so, is the DoFD immutable? ] Anything past that due considered  delinquent account, except provider does not send you to collections right off the bat. They want their money without collection agency taking a percentage. So, next statement is due immediately, just like when you dont pay your credit card in full and you have trailing interest. Same thing applies here. After the first statement, subsequent ones do not give you additional time to pay. It's past due already, and due immediately. 

In order to figure out (loosely) when the account became delinquent, you'd need the first statement. 

 

In those rare instances when we send accounts for collections, they want to know when the account became overdue. Here is the kicker. We can say it was 30 days after the statement, 90 days or any day after that initial statement became overdue.  There is really no rule, other than provider's tolerance and willingness to send account for collections. However, we are obligated to provide them that date. 

 

If that date is not included in free annual credit report, there is no way to guess how that particular provider treats collection accounts. 


Remedios,

Thank you for your patience and for sharing your time and expertise with me.

JWK


 

You're welcome. 

DOFD is (or at least should be) immutable when it comes to reporting and for the most part on issues such as lates, charge offs etc but medical tends to be a bit more gray(ish). I think that's why Robert suggested it's something that would require judge's opinion on when the clock actually started. 

I've asked our billing department today because the topic is of interest to me also, so I was told that collection agency requires name, demographic info, amount due and date account became past due. They need this because there is a certain period of time during which CRA will not report to allow for billing issues, insurance issues etc to be resolved.  If we do not forward account for 6 months after it became delinquent, it can be reported immediately. In your case, collections are not even reporting, so there is no way to tell which date provider used as past due date. We're not obligated legally to call it delinquent after any period of time, or report it as such. 

So, that'sprobably what happened with your September date. Account was past due, but not forwarded yet. September statement served as pre-collection notice. If it was a non profit hospital, pre collection notice is somewhat mandatory, but so is information on financial assistance they offer because ultimately  those loses are tax deductible as they get tax breaks for serving low or lower income population without the ability to pay, depending on where they fall on federal poverty levels. 

I am very doubtful that September would have been used as DOFD. September statement was the last warning shot. 

As far as seeing different language on statements, keep in mind they are generated from billing software, and basically templates. 

So, you get a nice statement or two asking you to pay, followed by "pay now", followed by "pay now or else". 

That's the crux of the problem. 

If provider gives you 30 days to pay, it becomes delinquent on the day following due date. If provider allows 3 weeks for payment, then it's delinquent after 21 days. 

 

One more thing to keep in mind, with medical debt, something on the statement saying "Payment due immediately" is not illegal because it's not regulated. So, again, at provider's discretion and typically open to interpretation.  If provider is not a non-profit type, there are few, if any regulations regarding patient payments if they were uninsured or if insurance paid but patient cannot satisfy deductible, out of pocket or copays. 

 

I typed way too much lol 

 

 

 

Message 16 of 19
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Re: If first mention of past due balance is 6 months after Date of Service, when is DOFD?


@Remedios wrote:
[SNIP]

 


Remedios,

You have helped me understand (as well as I can expect) the collective knowledge of this thread and closed the loop between the information you provided and that of the other two contributors.

Thank you very much.

Sincerely,

JWK

 

 

 

Message 17 of 19
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Senior Contributor

Re: If first mention of past due balance is 6 months after Date of Service, when is DOFD?

If you received said statements, why didn't you simply call them and set up a payment plan? Usually they will work with people, because like said above, they want all their Money. Instead of sending it to a CA who takes a cut.  Paying them $20-50 a month generally keeps them from doing so, while not paying anything for months would expedite the process.

 

This would have definitely taken all the hassle out of your current process of multiple PFD, to keep your CR clean.  






Message 18 of 19
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Re: If first mention of past due balance is 6 months after Date of Service, when is DOFD?


@Janus wrote:

If you received said statements, why didn't you simply call them and set up a payment plan? ...

 


... Because for almost 10 years my wife opened very few envelopes, except for greeting cards, which were always opened promptly.

 

Trust me, you have no idea!

 

JWK-in-RVA

 

Message 19 of 19
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