Tens of millions of people have problems paying off debt. Although hospitals shy away from hardball collection tactics, the medical provider can still write it off by sending the bill to a collection agency. Once the debt goes to a debt collector, it can pursue the debt by any legal means, which might mean a lawsuit.
Dispute the Debt
If you have concerns about the validity of the debt, such as when the bill contains erroneous charges, you can dispute the bill with the credit-reporting bureaus. The bureau will investigate the legitimacy of the bill. At the very least, the credit report's account must contain a notation that you dispute the delinquent bill's accuracy when you initiate a dispute within 30 days of receiving notice that the balance is in a collection agency's hands.
Settle It
You can settle any debt, even one with an entity not viewed as a creditor, such as a hospital. Offer to pay the entire bill in return for the collection agency declaring the entire delinquency a "mishap." You could negotiate directly with the hospital. Make sure you receive in writing a promise to remove the collection account from the creditor you owe money; you hold no leverage once the collection agency receives payment. Paying the balance in full gives you the best chance of seeing that the collection agency will agree to this request.
How Old Is It?
Selling a debt to a collection agency does not "renew" its life, so the credit bureaus can report it only for seven years from the date that the hospital writes it off. If the bill is close to the drop-off date, you might do better just waiting it out, even if paying it back is the ethical thing to do. Once the collection leaves your credit report, do not even acknowledge you owe the money, or else it can appear on your report with a more current date.
Tip
Review your state's law on debt collections. Hospitals, for example, must send the patient a bill before selling the debt to a collection agency. Dispute the debt with the credit bureaus as soon as it hits your credit report. Try to pay off the entire bill, but avoid settling. A settled debt is worse for your credit score than an open or "paid as agreed account." In the future, talk to your doctor about your finances before he has to send a bill to collections. Many doctors will work with you to get some amount of payment.
0 comments:
Post a Comment