Collection agency help

[lizziegrace]

I have a maximum out-of-pocket on my medical of $1500/year. Of course, I got hit with all of it at once back in April/May when it appeared my gallbladder was going. Turned out to be an ulcer, but that's beside the point.

I have 3 doctors (2 are radiologists) and 2 diagnostic centers who all want their money NOW. I've been paying on all of them but one of the diagnostic centers affiliated with a hospital here has turned me over to a collection agency. I've been paying faithfully every month.

Do I *have* to deal with the collection agency? I was finally getting out from under the mess my ex caused when I got divorced and now I'll have collection agency activity on my credit report. (He was taking his "girlfriend" out on credit cards that were in my name and I had to pay them off.)

Help?

[terrya]

1. You might look into a debt consolidation service.

You might be able to make monthly payments and satisfy the diagnostic centers and doctors.

Just a suggestion. I've enrolled in a debt consolidation service in the past...it got the collection agencies off my back.

[KitchenWitch]

2. I could be wrong about this, but since you were and are making a good faith effrort to pay

I think you can tell the collection agency to take a hike and deal directly with the creditor.

[SeattleGirl]

3. Deal directly with the creditor, NOT the collection agency.

And you might want to write a letter to the collection agency, and inform them you are not dealing with them, you are dealing with your direct creditor, and will continue doing so. Keep a copy of the letter, as well as copies of any and all checks you send to the creditor so you have a paper trail.

I fucking hate collection agencies. I swear, they get the bottom feeders of society to work for them.

[Ptah]

4. I have had good results when I consulted with the county Bar Association.

For a small fee ($25-$30?) I got some valuable assistance.

Good luck.

[lizziegrace]

5. Thanks all

If I told the collection agency I wanted to deal only with the creditor, they'd try to tell me I *have* to deal with them. I want to have my facts straight before I deal with them. :(

[lizziegrace]

6. one-time kick

:kick:

[Prisoner_Number_Six]

7. Ignore them.

A cell phone company fraudulently started an account in my name- when I found out six months later that I "owed" them over four hundred bucks and had been turned over to collection, the calls began. I told the operator flat out they were never getting as much as a red cent from me, then I hung up. Although they still call me 8pm daily, I know their number and I simply decline the call.

That's all they can do- harass me by phone, which I ignore. I told them the truth- they are NEVER going to get my money.

I've been inside those collection centers, and one of my clients owns his own agency, and I've talked to him about it. He agrees- they're powerless to do anything other than dial your number. If you hang up they can't do anything else to you.

I recommend you freeze your credit rating- you can do it for ninety days, during which time no creditor can add new items of debt. If you want, you can renew it each ninety days for as long as you want. It's called a "Security Freeze".

It's simple.

http://www.cga.ct.gov/2005/act/Pa/2005PA-00148-R00SB-00650-PA.htm

[Redstone]

9. Excellent advice, my friend. I do hope she pays heed to it.

Redstone

[lizziegrace]

10. I understand what you're both saying

but can't they hit my credit and even file for a judgement if I don't pay them? How can I get the collection agency completely out of the picture here?

[Prisoner_Number_Six]

12. They don't have any legal powers. They're a phone bank.

Nothing more.

Put that freeze on your credit rating. That's what the mechanism is there for- to protect your name and credit from unfair practices.

[lizziegrace]

13. So all three reporting agencies should be contacted

to put a freeze on my credit?

[Redstone]

8. The absolutely MOST important thing to remember: You do NOT owe ONE CENT

to any collection agency.

You may owe money to those doctors, but you do NOT owe any money to a collection agency.

Send what you can to the doctor / diagnostic center, and ignore the collection agency. Do not say a word to them either by phone or in writing.

Pay the people you owe what you can, and when you can afford to pay them, and negotiate with them (directly) if it's possible.

Did the colection agency provide you any service for which you owe them money? No, they did NOT.

DO NOT BE INTIMIDATED. Pay your bills when you can, but ONLY to the people to whom you owe those bills.

PS: Read prisoner_number-six's post. He's telling you the truth.

Redstone

[philosophie_en_rose]

11. Consult an attorney.

There are things that collections agencies (and credit reporting agencies) can't do, but often do, that are against the law.

If anything, demand that they prove that you owe anything. Always demand to get names from them and callback numbers. It makes them uneasy, when people push for information.

[Genevieve]

14. lizziegrace, don't ignore this

Collection agencies DO have the ability to trash your credit rating. if a collection agency reports you to even one of the three bureaus TranUnion, Experian, Equifax), they can drop your credit rating by 100 points or more.

A collection agency CAN mangle your credit score.

[Akoto]

15. After my mom's heart attack, we hired an attorney.

She was one of my mom's clients. Best thing we ever did, and here's why:

1) Cease and desist order. Once the lawyer sends this to the collection agency, they can't contact you except by writing, and only to inform you of specific action being taken. They can only contact the lawyer, so long as you give consent for that to happen. If they DO use some other means of contacting you after the C&D is sent, they are in violation and can be taken to court.

2) Lawyers know the ins and outs of the system. These are people trained to argue and to know the rules. Chances are, they can negotiate a reasonable payment plan or debt reduction better than you can.

3) When an attorney comes into the picture, some collection agencies/debtors will change their tune very quickly. In my mom's case, we had bills owed to two different hospitals. As soon as the attorney got involved, the first hospital drastically cut their bill to the point where we had no trouble paying it.