Collections advice please!!!?

Question

I have an issue w/ a collections agency. First when I go to my credit report the agency has only a po box and no phone #. Once I found them on my credit report (a few years after it posted) I filed a dispute. Nothing. I filed several more and then finally someone from the agency called. They told me there was nothing I could do I had to take it up w/ the doc. I call the doc and explain like I explained to the collection agency. I had 2 ins companies and he only billed one. He said the doc's office he contracted with only provided him the info for the one ins. I said I could call them and get my file which showed the 2 ins plans. He told me that since he could not bill them I now owed the debt. I was upset but whatever. We were talking about payments and I asked if I pay him is he going to take care of the collections and now all the fees w/ them. He said no that is my deal. I said they referred me to you to handle this. He said that was now my deal. What actions should I take now?

Anonymous · Accepted Answer

Wow!  I had to take several weeks off from answering questions here....and look what I come back to!  

Troy, quit calling your self a collection counselor if the best advice you can give is to have the debtor take out a loan!  Didn't you read one single thing in the question?  

Start by taking a peek at the part where here insurance company could cover the bill....if the doctor would only submit the bill!

The problem in resolving this is I'm a bit fuzzy on the details.  It sounds like this is a few years old.  That may complicate matters.  Sometimes the insurance company will give you a hard time in paying claims after this long.  

Start by looking at the statute of limitations and see when this debt runs out.  On medical bills, the SOL begins on the date the service was given.  So check the link below and see if it has expired.  If so, no problem.  Send a letter to the collection agency to leave you alone.

If it's about to expire, just sit back and wait.  Worse that will happen is they file a lawsuit on you.  Let the judge decide who is at fault.  Were I live the judges are a bit more consumer biased.  I watched a similar trial where the judge ordered a stay on the case, and told the doctor to get with the insurance company and figure the mess out.  The case was eventually dropped, the doctor was paid, and everyone was happy.  

Most of the problems with these situations is because the doctor and insurance company just can't get together.  Policies are very complicated, and many times it take a professional to do billing for them.  

I have suggest that the debtor get the doctor's billing department on the phone, then call the insurance company in a 3-way call.  Demand that these idiots get their paperwork in order now!  

The last step...if you can prove that this bill was covered under your policy and either the doctor or insurance company is at fault, file a lawsuit against them for ruining your credit.

Troy H · Answer

Hello I am a ceritified credit counselot and woudl like to try and answer your question.  

As you know at this point you will probally have to pay the collections account.  When you disputed the bill through the credit reports they did not respond because they found it was a valid debt.  All this means is that when they investigated the debt the bill collector stated it was a valid debt.

There are few things that you can try.
1. A loan, this may or may not work unfortunetly with this bill creditors will see you as a high risk and do one of tow things:
deny the loan, or give you a very high interest rate.  However it may pay the debt off.

2.  Settle the account.  Be careful under current IRS regualtions if you save $600.00 or more you can be taxed.  In addition the amount that you save is often sold to another collection agency and they will add fees and try to collect it.

3.  Join a Credit Counseling Service.  This is something I can help you with.  By joining a debt management program you will pay the full amount but in montly payments, consolidation can be on your credit report but will be removed.  First three months the creidtor can ask for higher payments, and they may choose to work with the program
 
There are a few books that you want to lok at 
Credit repair NOLO
Money Troubles by NOLO

Matt · Answer

Pay the collection only if you get an agreement in writing for "payment for deletion of the negative entry". If they are not willing to do this or say they will, but will not put it in writing, then do not pay.

The damage to your credit report is done. Paying any amout to the collection agency will re-age the debt and the 7 year clock will start over again.  

Why prolong the damage that is done. At this point, you are in control. You get what you want or they get nothing. 

Good luck

patricia h · Answer

hellow i have a hosptial bill that is at least 3 yrs old and it has went trough franklin collection aect i agreed to pay at least a 100 dollars until this is payed. i am not working but my husband is. i would like to pay all this offr. but we have filed bankruptcy in the past i think about 5or 6 yrs ago. i need help to pay this all, is there anyway i coulod borrow at least 4000. some how  hellumsjulie@bellsouth.net this should had done ben payed off

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Collections advice please!!!?

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