I am trying to fix my credit but I have a 4000 medical bill that has went to a collection agency on my credit report. The collection agency are very hard people to talk to. I contacted them to fix the situation now they wont leave me alone. They are threathning to sue me and they want me to make a promise to pay over the phone of half or even a thousand to stop the court case. I rather would not even deal with them. I would be willing to pay the hospital. They seem a little more professional. Can I switch back over or should I just pay the collection agency what I can. I believe if I paid the hospital they could forward the money to the agency. How would it be listed on my credit report. ( paying as agreed or something else) Please Help!!
2007-03-14 15:42:12 · 5 answers · asked by michelle 2 in Business & Finance ➔ Credit
The hospital is no longer an interested party in the matter. They sold the debt. It is now the property of the collection agency. The hospital might or might not forward the money. How it reflects on your credit report will depend upon the agreement or lack of an agreement you make with the collection agency.
2007-03-14 15:47:06 · answer #1 · answered by OPM 7 · 0⤊ 0⤋
Generally the answer is no. Once an entity "sells" an over-due account to a collection agency it is out-bid for a % on the dollar amount owed.
What ever is collected is then split between the two on a pre-arranged % basis.
However all is not lost.... they are obligated to work out a payment agreement with you and you can negotiate a reduced payment for balance in full.... such as say I can pay you half the balance owed next week and call it settled.
No they will not be as professional as the Hospital, their business is collections and the more they can get from you the more they make... but you do have rights.
They can not call you at work, no calls after 9 etc... Also do not worry... it would be small claims court and the worst that would happen would be a payment schedule would be arraigned by you with a judge..... Taking you to court for a $4,000.00 debit would cost them more then that.
So woman take charge and turn it around, tell them YOUR terms...hang up on them or ask for their supervisor when they are rude ot violating the calling hour rule....
2007-03-14 16:00:52 · answer #2 · answered by Annemarie M 1 · 0⤊ 0⤋
It depends on old the debt is. Bad debts are usually charged to profit and loss and written off after a certain period. Then they are sold to junk debt buyers.
If the collection agency is working for the hospital, then you have the right to tell the collection agency to leave you alone. Send them a cease and desist letter stating that you will pay the hospital directly.
If the hospital sold the debt to the collection agency, they probably did it for pennies on the dollar. You might be able to settle with them for a fraction of the original debt.
Derogatory trade lines remain on the credit reports for seven years. After you pay the debt, it should be marked as paid in your credit reports.
2007-03-14 18:58:50 · answer #3 · answered by Ti 7 · 0⤊ 0⤋
Unfortunately you have to deal with the collection agency only. On the bright side you could threaten them with the promise that you will not pay a penny unless they talk to you nicely and work out an arrangement which will be mutually beneficial to both of you. I bet they will listen. Good luck.
2007-03-14 15:48:35 · answer #4 · answered by Akbar B 6 · 0⤊ 0⤋
once those theives get involved they will not stop until an eggplant gets involved. And they CANNOT threaten you in anyway that is FEDERAL LAW! Next time they call record it take it to an eggplant (attorney) and watch the court fun begin.
As for your credit report it is a severe hit now that the thieves are involved and it takes a minimum 5 years to remove it.
2007-03-14 15:48:49 · answer #5 · answered by Anonymous · 0⤊ 0⤋