I need answers about collection agencies
September 19, 2024 7:33 PM Subscribe
Due to some crappy insurance and other misunderstandings, I owe two hospitals
a chunk of change. They would try to do "monthly payments" of $297 for example. I don't have that. The other hospital and I are having a significant miscommunication about the financial aid I was supposed to receive (longer story yet, but I have the award letter right here).
Now of course, the creditor notices are coming in (it's been less than a year). I'm reading up on creditors in my state but I have questions.
I'm at least 50 percent sure the amounts are correct (Except the one that just came in from the hospital, and I can find no EOB that matches.)
To quote Joni Mitchell, "the bills bury you like an avalanche."
I do NOT want to be taken to court.
I talked to a (retired) lawyer friend and he suggested offering them less, but I have no money for a lump settlement, just enough for the basics, but not much more, and when I DO have the extra, it is going towards jettisoning the credit cards I jacked up during COVID--no clucking of tongues please, I was off work for months and with the exception of a couple small need based grants, was without income.
I read about how communication with them re-sets the clock, but I do want to communicate and I do want to pay them, I just don't have it now (Or, it would be $50 a month...)
Now of course, the creditor notices are coming in (it's been less than a year). I'm reading up on creditors in my state but I have questions.
I'm at least 50 percent sure the amounts are correct (Except the one that just came in from the hospital, and I can find no EOB that matches.)
To quote Joni Mitchell, "the bills bury you like an avalanche."
I do NOT want to be taken to court.
I talked to a (retired) lawyer friend and he suggested offering them less, but I have no money for a lump settlement, just enough for the basics, but not much more, and when I DO have the extra, it is going towards jettisoning the credit cards I jacked up during COVID--no clucking of tongues please, I was off work for months and with the exception of a couple small need based grants, was without income.
I read about how communication with them re-sets the clock, but I do want to communicate and I do want to pay them, I just don't have it now (Or, it would be $50 a month...)
If you haven't yet, call the phone number on the hospital bill and ask to be transferred to their "charity care" or "financial assistance" department. Then find out what you need to do to apply for forgiveness of all or part of your hospital bills.
The income limits are a lot higher than most people think. In my state, up to 300% of the federal poverty line ($81,720 for a family of 2) qualifies for total forgiveness of the hospital bill, and higher incomes still get partial forgiveness of the bill.
But it's not automatic. You have to do a bunch of paperwork and turn in the necessary documentation of your income. Yeah, that's a hassle, but your hourly rate for jumping through those hoops will be hundreds or even thousands of dollars per hour.
posted by Jacqueline at 9:04 PM on September 19 [14 favorites]
The income limits are a lot higher than most people think. In my state, up to 300% of the federal poverty line ($81,720 for a family of 2) qualifies for total forgiveness of the hospital bill, and higher incomes still get partial forgiveness of the bill.
But it's not automatic. You have to do a bunch of paperwork and turn in the necessary documentation of your income. Yeah, that's a hassle, but your hourly rate for jumping through those hoops will be hundreds or even thousands of dollars per hour.
posted by Jacqueline at 9:04 PM on September 19 [14 favorites]
In the interim, if collection agencies call you, the only thing to say to them after confirming your identity is "I dispute the validity of the debt. Do not call me again."
Legitimate collection agencies will then go obtain documentation of the debt from their client (the hospital) and follow up with you via postal mail.
I used to work in B2B collections for an agency that also did consumer medical debt collection. While it wasn't my department, I sometimes helped cover incoming calls for the consumer side, so I had to go through all the training. A lot of medical debt that was supposed to be forgiven got placed with our agency by mistake, and the debt validation process is when that mistake would be uncovered and corrected.
Even if the collection agency "validates" the debt and sends you a letter in the mail documenting that you owe the money, that mailing will include instructions on how to dispute it. That's when you send the collection agency copies of the financial assistance letters etc from the hospital.
At the agency I used to work at, the hiring standards for the people working in the debt validation department were *much* higher than the hiring standards for the people working in the debt collection departments, and I expect that the same is true at most agencies. So disputing the validity of the debt is the quickest way to get your situation escalated to the people with actual brains.
posted by Jacqueline at 9:10 PM on September 19 [15 favorites]
Legitimate collection agencies will then go obtain documentation of the debt from their client (the hospital) and follow up with you via postal mail.
I used to work in B2B collections for an agency that also did consumer medical debt collection. While it wasn't my department, I sometimes helped cover incoming calls for the consumer side, so I had to go through all the training. A lot of medical debt that was supposed to be forgiven got placed with our agency by mistake, and the debt validation process is when that mistake would be uncovered and corrected.
Even if the collection agency "validates" the debt and sends you a letter in the mail documenting that you owe the money, that mailing will include instructions on how to dispute it. That's when you send the collection agency copies of the financial assistance letters etc from the hospital.
At the agency I used to work at, the hiring standards for the people working in the debt validation department were *much* higher than the hiring standards for the people working in the debt collection departments, and I expect that the same is true at most agencies. So disputing the validity of the debt is the quickest way to get your situation escalated to the people with actual brains.
posted by Jacqueline at 9:10 PM on September 19 [15 favorites]
What is your location? States have their own laws about how medical debt can be pursued, you may have some help.
posted by ThePinkSuperhero at 4:12 AM on September 20
posted by ThePinkSuperhero at 4:12 AM on September 20
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Unless your credit cards are also in collections, I would pay the minimums on those and focus on putting the extra money towards a monthly payment to the hospital bills that are in collections. Yes, interest sucks, but there is a 0% chance of getting sued for only paying the minimum on a credit card, whereas there is definitely a non-0% chance you could be sued by the collection agency.
As far as communication resetting the clock, that's something you consider when you're on the far end of the statute of limitations trying to run out the clock to where they can no longer actually sue you for a debt. Not something to take into account now.
posted by tubedogg at 8:39 PM on September 19