CA is requesting more than original amount for PFD, should I go HIPAA route?

[Anonymous]

Hello,

I sent a letter to California Business Bureau for a PFD request offering to pay the full amount of $800. This is my second time mailing them a letter and their first to respond. So they started calling me repeatedly and I was able to talk to them on the phone today. He said, "Yes you offered the full amount, but if I am going to do a PFD then you have to pay the incurred fees too which is now $1,200, not $800, but I will work with you and the best we can do is $1,100." He wouldn't budge and wouldn't provide confirmation in writing prior to payment (another user told me to just record the conversation if I go through with it which is great advise). He left his terrible offer on the table for 72 hours he said. 

Now I am reading about the HIPAA removal process at Why Chat and am wondering if that is a better route. My big question though is, this is a medical bill from 5 years ago, will the HIPAA route work still? Before reading about HIPAA, I called the original hospital to see if I could pay them and they said it's been so long that it is so far out of their hands. Is there a chance that the CA already validated teh debt? When I first went to collections i made them a payment of $200.

My main goal of course is to remove it from my credit report. if I pay and they don't delete it, then I will have lost additional $300. By the way, a few months back they offered a settlement of $300, but I want it deleted which is why I offered the full amount, for better luck. But what a surprise, the debt colelctor was terrible on the phone and I'd rather not deal with him. He said I can talk to his supervisor if I don't want to deal with him, but I am sure she is a bigger shark.

Thank you in advance!

[creditguy]

I can't answer your question as far the HIPAA removal process but i will say this is a terrible offer. If you truly want the debt removed now then the call is yours to PFD. But if this debt is five years old you have passed the SOL in California for a lawsuit. The CA really has no leverage to get you to pay that amount unless they sense desperation. If it were me I'd say no deal, the debt will fall off in a few years, the ball is in their court to come back with a better offer. They are simply milking you on these incurred fees, what a joke. And finally if there is no deal in writing then there is no deal, never just take their word for it.  Good Luck with whatever you decide to do. 

[Anonymous]

Thank you, that was helpful info about the SOL. I just checked my report again and it was reported Sept 8, 2010. Since it's so old I don't think it's really hurting my score (it is my only account in collections). We want to buy a home next year so i was trying to be proactive, but now I am not sure if it's worth it....tough decision. I could always drive 1 hour to see them in person and "make the drop."  I wonder how that would go over. 

[creditguy]

If your going to buy a house it may be an issue, but maybe not, Hopefully you can learn more of the HIPAA process and get it worked out. But it should fall off in 2017 and with early exclusion you could possibly get it removed earlier. Regardless you have the upper hand dealing with them, they more than likely bought your debt for pennies on the dollar so even 50% of the debt would be a profit for them, so keep working them and don't mention you want to buy a house, you just simply want to clean up your file and move on. Determination and patience will get you there. 

[Anonymous]

Thank you again. I am thinking maybe I wait it out and then see if the Lender asks me to pay it off. I did not mention anyhting about a home loan to him, thankfully. When he said $1,200 I laughed and said, "I'm not going to fall for that, you bought this debt for a fraction of this!"

It's just  frustrating though because I can afford to pay it off now, and it's such a game to be played, it's terrible. 

[Anonymous]

i did had to deal with something similiar to this back in the day when i was going through the pfd process.  I had an old hospital bill and they agreed to pfd BUT i had to pay off another hospital bill that wasnt even on my credit report anymore cause it was past the 7 years.  I had to pay both but it was worth it to me in the long run to make it dissapear.  

[RobertEG]

Check out the terms set forth in your original contract with the creditor.

FDCPA 808(1) makes it an express violation for a debt collector to attempt to collect any amount, including any interest and fees, beyond the principal amount of the credit unless it is expressly authorized in the account agreement that created the debt or is authorized by law.

If your agreement with the OC did not include expresss provision for whatever fee they are attempting to collect, then you could assert a violation on their part of FDCPA 808(1).

[Anonymous]

YOU. ARE. AWESOME. Thank you so much! My original debt is with the hospital and, well, I was in labor at the time so I don't know if that was a clause. But I would bet that the CA doesn't know at all! Thank you, thank you, thank you!

[Anonymous]

They may be in violation but be careful and be prepared if you start to use words like violation and law etc etc, because they could shut down completely and not speak to you anymore.  You will for sure not get any type of pfd and you will have to sit on that collection for 2 more years or however long it will be on your credit report.  

[Anonymous]

Ahhh good point! Geeze, maybe I should go play a few hands of poker first. I gotta brush up on my game theory! Thanks for the tip!