Are collection agencies required to notify you of accounts you hold with them?

Question

About two or three years ago, at age 18, I received a letter form a collection agency stating that a medical account that had gone into collections had been transfered to my credit report when I had turned 18 and that I owed them X amount of dollars. Being that I am a working student I didn't get around to paying off THAT particular bill until about a year ago. Upon paying the bill I was notified that I had 10 other accounts with them (all under $70). Between the 10 accounts, $400 interest had accrued! Aren't they required to inform me of ALL accounts I hold with them? I would have paid off the other accounts if I knew they even existed! Is it reasonable to ask them to eliminate the interest? Would it be reasonable to ask them to delete the information off of my credit report based on lack of knowledge of the accounts?

Answer 1

Oh my! Kate, how do you manage to walk without tripping...the way you keep your nose stuck up like that!

Take a look at the link below. This is the Fair Credit Reporting Act. Now scroll down to Section 809, "Validation Of Debts". See the part where it says the collection agent must notify the consumer that they are collection on a debt? See the part where the consumer is allowed to dispute this debt before the collector can begin "collection activities" which include posting reports to your credit history?

Now see the part where the consumer can sue them for $1000 if they don't do it?

Oh right. Hard to read with your nose stuck up that high, sorry.

Kelly is right on this one. I suspect that if these debts occured prior to you becoming 18 you do not have any legal obligation to pay the bills.

What you need to do NOW is the following:

Send the credit reporting agencies a dispute letter informing them of the details here....

1) You were not properly notified of the debt, in violation of Section 809 of the FDCA...

2) You are lot legally liable for a debt that happened while you were a minor.

Then send the creditor a letter demanding that they properly validate this debt. Tell them to send you all copies of contracts, bills, and anything to prove you have a debt these people.

Since this is a medical bill, you will run into some disclosure issues. Don't let them stonewall you, demand this information from them.

If they don't respond, and don't remove this from your credit reports, then sue them. It is a simple small claims suit, and as long as you followed the procedures in the FCRA and FDCA laws you will have no problems winning it.

I suspect what they will tell you is that you were properly notified of the debt, but the may have sent it to your "last known address". These notifications are not required to be sent by certified mail so there is no proof they sent it or not. But you still have the right to demand validation of this debt! Go after them!

Answer 2

If you were under 18 when those medical accounts were created, your legal guardian or parents would have been legally responsible for the bills.The doctors office or whoever you incurred those bills with would have tried to contact you by letters and phone calls to collect the money before they turned the accounts over to collections.

I would make sure that these are really your bills before I paid anymore money to these people. Go to AnnualCreditReport.com and pull your credit report with all three bureaus. (It's free to do this) See if these accounts are showing on your credit. .You have the legal right to dispute these accounts and tell the collections agency's that you want copies of all the paperwork from these accounts. Talk to your parents or guardians to see if they know anything about these bills.

This sounds very fishy to me. I have been processing loans for years and see medical collections on credit reports everyday, but I have never seen any where the person was charged interest on the medical debts.

I would do some investigating on this. If you feel these are not your debts, then you can dispute them with the credit bureaus and they will investigate the accounts and take them off of your credit if they find the accounts are in error.

Good luck with this.

Answer 3

never hurts to ask. Was it all from the same doctor? Usually you are notified by the collection agency that they are not handling it. Seems weird that they just didn't pursue it. Collection agencies don't leave you alone. Try to work with them, more then likely they will make a deal. Good luck

Answer 4

I don't think they are required to notify you.

You can certainly call them and ask them to pull that stuff off of your credit record because you were never informed, especially if they can get paid.

One word of warning. Get your agreement in writing before paying a cent. The agreement should spell out exactly what both parties are obligated to do.

Answer 5

Individuals know they have debts and NO one is required to keep telling you .
When someone fails to pay up , the creditor turns it over to collections to try and recover . . . If they feel they can , they will but the individual knows they owe the $$ so why would the government require someone to keep reminding them .
This is the adult world , mommy isn't here to do your laundry , wake you up for work or manage your bills.

Answer 6

They sure do get cha when they want to huh?!