-I got a Collections letter today for $50!? It's an overpayment from a past insurance company. Date of service was 11-6-2005 for a medicine prescription.
----------------------------------------------------------------------------------- Nobody ever informed me of coverage termination prior to my pharmacy visit on 11-6-2005, but THEY WIN because even though I did not terminate coverage, they have proof of my employer (mistakenly) terminating coverage.
--------------------------------------------------- I can't sue my Federal Employer ( the TSA) , but I won't pay a dime!
-- Can anybody tell me:
------------------------------------------------------------------------ Will they serve me papers to go to court for $50 Will I have to get a lawyer? How much will I be spending on lawyers and court costs?
----------------------------------------------------------------------------------------- If I have nothing to worry about legally; will my credit score of 819 realistically be hurt
2007-05-07 22:10:05 · 9 answers · asked by Laszlo D 4 in Business & Finance ➔ Credit
They can sue if they want to. They probably won't for that small of an amount, but you never know. Paying for a lawyer would be a waste of money, because you don't have a case you can defend. To protect your credit score, just pay the $50 and try to get your employer to reimburse you.
2007-05-07 22:20:40 · answer #1 · answered by Brian G 6 · 0⤊ 0⤋
They may sue if you do not pay, so it is better to deal with it before it gets to that point. You will need a lawyer if they sue; if you can't get this resolved, you may want to talk to a lawyer anyway to see if they can help you get it resolved.
You need to go back to the insurance company and ask them why this is going into collections, since you were supposed to have coverage at the time. They need to prove that you didn't have coverage and that you should have to pay. If they did not accept your proof, then you need to find out what else is needed to prove it to them.
If it has not already hit your credit report, and you do not get it resolved before it hits your credit report, you will probably take a 50 - 75 point hit on your score. Above 720 or so is usually considered prime, so you should be okay for borrowing money if you need to, but it does affect your score.
It may be more expedient and cheaper in the long run to pay the $50, but only if they agree to not report the paid collection on your credit reports. You need to get this agreement in writing before you send them any money.
Try www.creditinfocenter.com for more information.
2007-05-08 01:11:30 · answer #2 · answered by aj485 5 · 0⤊ 0⤋
Hate to break it to you, but if it's really gone to collections and not just a nasty letter from the company you have not paid, then it's already going to impact your credit rating. No sense in paying up either as either way, you're already taking the fall regardless.
Also, you can sue whomever you want, but that still wont change your credit rating.
No idea on how much your rating will drop as it's dependent on a lot of things. Do expect a hit however, and minimize the blow by not opening any new inquiries for the next few years.
2007-05-07 23:24:22 · answer #3 · answered by iSpeakTheTruth 7 · 0⤊ 0⤋
They can sue - however it is unlikely they will for $50. Most creditors will just put it on your credit report and wait. They will wait until you need a mortgage and the lender requires you to pay it off. If it's a government agency they may just deduct it from your federal tax refund next year if they can get the IRS to play along. Good Luck
2007-05-07 22:38:45 · answer #4 · answered by GUS 4 · 0⤊ 0⤋
just pay the $50. They most likely wont sue you but in most states. the legal costs to do so would fall on you. so if they spend 10,000 on their attorneys and court costs you now owe 10,050. Just pay the $50 its not worth the stress
2007-05-07 22:29:10 · answer #5 · answered by mrsjanejetson 2 · 0⤊ 0⤋
Pay the $50 and go to the credit bureau and have it cleared from your record. If you explain what happened, they will indicate it on your credit file.
2007-05-07 22:20:48 · answer #6 · answered by PEGGY S 7 · 0⤊ 1⤋
Pay the $50.00. Trust me,You will sleep better at night.
2007-05-08 03:23:16 · answer #7 · answered by lilpuppy6 3 · 0⤊ 0⤋
Go to the forum section of http://creditboards.com and READ READ READ
2007-05-08 02:28:53 · answer #8 · answered by starfairy181 2 · 0⤊ 0⤋
yes it can hurt u but not that much and pay it
2007-05-08 04:45:50 · answer #9 · answered by shorty21 5 · 0⤊ 0⤋