credit agency?

Question

I receive a letter several months ago stating that my mom didn't have insurance at the time of services (she was hospitalized for several days). The letter never stated how much she owed. I basically filed the letter away. Last week I get a phone call from a credit agency. They wouldn't talk to me even though I have Power of Attorney. I had no clue what this was about. Today I get a letter stating that she owes $$ and the creditor is attemptying to collect debt. I go ahead and write a check for the amount due. Well now what happens? Is her credit wrecked? What do I have to do to remedy this?

Answer 1

Medical collections are the easiest to negotiate. Ask them if they'll accept $0.25 per $1 owed. Also, if credit is wrecked (and it probably is) removal of an item can be a negotiating point too.

Remember, if you are saying an item should be deleted (not shown as paid, that will still lower you score), then DO NOT pay with a credit card. Pay with an official or cashier's check with a conditional endorsement on the back of it. Something like "Endorsement of check constitutes payment in full for all services rendered prior to 9/10/07. Also, ABC collection agrees to delete all negative collection accounts from any associated credit report". Something like this ensures you can have the item removed from a credit report. A credit card doesn't allow you any recourse if the collection company claims they didn't agree to remove the item. They are only obligated to show the item as paid (still damaging your score)

Answer 2

To begin, does your mom have medicare or medicaid? I am just wondering because usually "younger" daughters do not have POA, if she does, were they billed properly? You can request that the collection agency speak to you because of the POA, talk to a manager if necessary. I do agree with what CHAD H says about having a conditional endorsement on the back of the check; however, I recommend a personal check because they are easier to track through your bank than a money order. If the collection agency does not remove the item from her credit you can dispute the account at a later date and have it removed. Good luck!

Answer 3

Her credit may have a ding for the hospital collection but if you paid it, that should resolve it. It may not have even been reported to the credit bureau.

Answer 4

Hi,

It's good that you are keen on repayment. You need to assess the situation well to find out actually what made this happen. Check out http://financeguru.consumerspot.info for some useful info and tips. Good luck!