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BAD DEBT CHARGEOFF TO BAD DEBT CHARGEBACK

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BAD DEBT CHARGEOFF TO BAD DEBT CHARGEBACK

I have a question. Does anyone have an answer?  I asked for verification from the CA and got a copy of the record from the OC.  It lists all of the medical procedures along with the amounts charged.  This bill started 1/07/04 and at the bottom of the bill dated 02/20/08 it lists bad debt chargeoff.  Payment -124.90 -- balance 0.00    Then on 07/29/08 it lists bad debt chargeback 124.90 charge 124.90 balance.  Does this mean that the OC pulled the account back from the CA?  Your help would be appreciated.  Thank you.
Message 1 of 4
3 REPLIES 3
Legendary Contributor

Re: BAD DEBT CHARGEOFF TO BAD DEBT CHARGEBACK

As best I can tell from what you report, the OC apparently first charged off the account to secure a tax writeoff of the debt, but later pulled back their decision to charge it off.  This would indicate that the OC still owns the debt, and the  CA was not sold the account, but merely licensed as an assignee of the OC for debt collection purposes.  So your debt is apparently still legally with the OC, but they wont discuss it with you since they have hired the CA to handle it for them.  You have apparently requested and obtained validation of the debt and of the CAs right to act on behalf of the OC in collection of the debt.  That is where you apparently now stand.
If the debt was from back in 2004, your should FIRST determine when the SOL expires.  Expiration of the SOL does not relieve you of the debt, but it does prevent the CA from bringing suit for its collection.  Should you then decide not to pay off the debt, you can simply tell the CA to desist in further collection efforts, as the SOL has expired and you do not want any further discussion with them.
Message 2 of 4
Senior Contributor

Re: BAD DEBT CHARGEOFF TO BAD DEBT CHARGEBACK

Medical debts are rarely sold to a CA (though it looks like they might have tried that at first, and then changed their minds). That's a lucky break for you!!

HIPAA them. Send the OC a cashier's check or personal check for the amount owed AFTER you've pre-HIPAAed the CRAs.

Send the CRAs this, CMRR, modified as needed:

EXPERIAN/TRANSUNION/EQUIFAX
CRA ADDRESS
CITY, STATE ZIP

MONTH DAY, YEAR

Dear Sir or Madam,

My name is YOUR NAME , my SS # is XXX-XX-XXXX.

I am sending this dispute certified mail # _________________________________ to make sure you receive it.

I have no knowledge or records of account # XXX*** as reported COLLECTION AGENCY.

Please advise me as to the name and address of the medical provider, the date and type of service, and to whom the service was provided, as any account I might have had would be obsolete.

If you can obtain this information, I also would need the name of the person providing this data, and the manner in which it was provided in order that I may pursue additional legal remedies.

If you cannot obtain the information from the original creditor within the required time frame (30 days), please delete this account from my credit report.

Please mail me an updated report when this dispute is completed.

Very respectfully,
YOUR NAME

YOUR ADDRESS
CITY, STATE ZIP

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*

Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!

Message 3 of 4
Senior Contributor

Re: BAD DEBT CHARGEOFF TO BAD DEBT CHARGEBACK

Once feedback/reply comes from the CRAs, send the OC (since they would have provided you with the OC's info, including ORIGINAL account number(s) ) this letter. Again, obviously, modify as needed.

YOUR NAME
STREET
CITY, STATE ZIP

SSN: XXX-XX-XXXX

HIPAA Compliance Office
ORIGINAL CREDITOR NAME
STREET
CITY, STATE ZIP

MONTH DAY, YEAR

Dear Sir/Madam;
This letter is in reference to (account #) for services provided to PATIENT NAME on (date of service).

INSERT A, B, OR C (insert whichever applies to your situation).

Please be advised that under Federal Statutes. the Fair Credit Reporting Act, (15 U.S.C. § 1681 et seq) and YOUR STATE Consumer Credit Statutes, you may be held liable for the actions of COLLECTION AGENCY.

(a) Duty of furnishers of information to provide accurate information.
(1) Prohibition.
(A) Reporting information with actual knowledge of errors.
A person shall not furnish any information relating to a consumer to any consumer reporting agency if the person knows or consciously avoids knowing that the information is inaccurate.

In addition, the HIPAA and YOUR STATE Medical Privacy Statutes are in effect in this situation even though the health care services you provided may have been prior to enactment.

The Privacy Rules prohibits a covered entity from using or disclosing an individual's protected health information ("PHI") unless specifically authorized by the individual or otherwise allowed under the Privacy Rules.

In general, PHI encompasses substantially all "individually identifiable health information" that is transmitted or maintained in any medium. "Individually identifiable health information" includes health information that is created or received by a health care provider, health plan, employer, or health care clearinghouse, and that relates to an individual's physical or mental health or condition, including information related to an individual's care or the PAYMENT for such care.

Your furnishing of my account information to COLLECTION AGENCY, is not in compliance with HIPAA, or YOUR STATE Privacy Act, and any subsequent reporting of this account on my credit reports to (credit reporting bureaus) is a clear violation of Public Law 104-191 ("HIPAA") since there can be no permissible business purpose in divulging protected health information to anyone on an account once there is no longer any payment due.

You are required under the FCRA and FACTA to accurately report the status of any account to the credit bureaus, and you are prohibited under the HIPAA and State privacy regulations from doing so on a PAID account, as there is no longer any permitted business purpose.

Therefore I am requesting you promptly rescind all such account information furnished to (collection agency) and require them to purge their records of all reference to this account, and that you insure that any and all reporting of this account is immediately deleted from my credit reports.

This simple procedure to request the deletion of ALL reference to this account from the records of COLLECTION AGENCY and to require them to have this account information deleted in its entirety from my credit reports will resolve this problem completely.

Please respond, in writing within 10 days that you are processing this request.

I am reserving the right, to take appropriate legal and civil action including reporting to any applicable regulatory authorities any lack of cooperation or compliance with this request.

I hereby waive my rights under HIPAA and any State Privacy Act for the single purpose of your transmission of this request and accompanying documentation in any required report you must make to your E &O insurance carrier.

Sincerely,



YOUR NAME




















(insert a)
Enclosed please find my remittance of ($___) for payment in full of this account.
(insert this if the payment is less than billed)This payment in full is for services as per the attached fee schedule from XXXX XXXX)
Health Care Billing Charts
Please note, my remittance is payable ONLY to (hc provider) and may not be signed over or transferred to any third party collection agency, as this would constitute an additional violation of HIPAA and State Privacy Act rules .
Copies of this correspondence and a copy of the remittance check may be used for any further actions with State or Federal agencies
.......................................................................... ..............................................

(insert b)
This account is in error.
It has either been paid, is a billing error,or was not transmitted in a timely manner to my insurance company.
It is not a valid bill and has been properly disputed, therefore I request complete deletion from all your agent (name of CA)'s records and archives.
.......................................................................... ...............................................

(insert c)
This is not my account,
It has been billed to me in error. and has been properly disputed, therefore I request complete deletion from all your agent ( name of CA)'s records and archives.

***NOTE: if you choose to send payment with the HIPAA letter, make sure to send it WITH the HIPAA letter.

HTH!!

(ALL credit goes to WhyChat for the creation of the letter, and to HappyDays and Fused for posting it here all the times we've asked them to!!)

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*

Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!

Message 4 of 4
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