How to respond to a collection agency re: a debt that is over 7 yr old, plus I'm not sure that I owe this!

Question

I recieved a letter from a CA stating that they are trying to collect on an account from a hospital. The account has been passed on from the hospital to another company (maybe an accounting firm) and then to the CA. The service date goes back over 7 years for one bill and over 9 years for another. This is the first time I have been contacted re: these bills. The hospital has never sent us a bill or tried to contact us. I don't even know if I owe this or if is some type of billing mistake. I know that there is a time limit on collections, but not sure how it is calculated. Has any one experieced this or have advice.

Answer 1

Three things.

First send them a certified return receipt requested letter demanding that they validate the debt, chances are they can't.

Second look up your State's statute of limitations for debts, I have posted a link so you can do this.

Third if they can validate the debt but the S.O.L. has expired there really is nothing they can do, even if they try and sue you all you have to do is show the court that the S.O.L. has expired and the case will be dismissed.



http://www.bcsalliance.com/index.html

Answer 2

Once a debt is more than 7 years old, I don't believe you have to pay it. Contact the debt collection company, the hospital will not be able to help you once the account has been turned over.
Companies 'buy' and 'sell' these accounts. This means that say you owe $500, the hospital 'sold' the account because they don't believe you are going to pay them the $500. They sold it to the collection company for say, $250. Now the company is hoping to get the money form you and make a profit. Otherwise, they lose whatever they paid for the account.

Answer 3

First - pull your credit. If the original debt shows "charged off." Then tell the collection company to take a hike.

A charge off means that the creditor (in this case, the hospital) considered the loan uncollectible and wrote it off their books. In other words, YOU DON'T OWE IT.

Companies routinely "sell" old debts to these collection companies for a fee (percentage of the amount owed). It's just another way for them to recoup their losses. But if the account is "charged off" you don't owe the money. Which means the collection company is blowing smoke!

If the account is charged off and you make ONE payment to the collection company you are opening a NEW debt and they can hit your credit report for it as if the debt happened yesterday.

If the account is charged off (or not on your credit at all, even better!) then the next time they call you tell them that the debt is not owed, to stop calling you and that they are harassing you. If they don't stop calling you, contact a lawyer.

After my mom passed away some companies tried to collect from my dad. He made one appointment with a lawyer, had the guy draft a letter to the companies and fax it over, and they stopped calling. Then they tried again 6 months later and he refaxed the letter and they stopped. For the cost of one appointment a lawyer can do this for you.

For more information on credit, or to get your credit check out my site here: http://www.1-800badcredit.com.

Good luck to you!

Answer 4

Medical accounts generally fall under the UCC for goods and services and has a 4 year SOL that starts from date of service.
But, if the medical provider receives any state, federal, etc., funding than a SOL defense on it's own, if they decide to sue, is not much of a defense since it could be looked at as a type of government debt. (if they use that angle in their suit)
You could "try" to use SOL even if the med. provider receives that type of funding.

Because of HIPAA laws, medical accounts are different than regular money debts in that:
You have a legal right to request a "full" accounting of the account from the original provider
You have the legal right to bypass the collection agency and pay the medical provider and the medical provider must recall the account from the CA and demand the CA remove all traces of the account from their files and from a persons credit report if they are reporting (though in your case the CA should not be reporting since it has been longer than 7 years)
If you had insurance and provided the insurance info to the medical provider and they failed to file a claim in a proper and timely basis then you can legally tell the medical provider that there is no valid amount due.

If you deal with the CA you run the risk of waiving your HIPAA rights. Requesting validation from them can skirt the edge of waiving your rights (there are many that had requested validation before learning of HIPAA and still successfully used their HIPAA rights with the original provider), making a payment deal with the CA will definately waive your rights.

You might click on my profile and click on the last link I have listed to the free credit discussion board. Do some reading in the medical forum. After doing some reading, feel free to ask any questions you may have in that forum.

Answer 5

state law controls this [you are a Yank, aren't you?], so you'll need to look up your states laws -- google will help with this.

as to whether the alleged bill is even yours, you are entitled to reasonable proof. a CA would have to present reasonable proof that the services rendered were actually rendered to you and not to some walk-in with the same or similar name [my wife used to get collecting phone calls for someone with a similar name -- never were her bills at all.]


GL

Answer 6

even if the hospital sold off your account to a collection agency the y will still have a recond
contact the hospital in question see what is up ..if they are indeed yours then pay them!!!!!!!
if not contact the collection agency and discuss with them how they are not yours.....
time limit?? you are kidding right? pay your debts

Answer 7

Call the hospital directly. If it is a lot of money call a lawyer.