Assigned to Collections / Dentist willing to work with me

My question involves collection proceedings in the State of: California.

Hi Everyone,

I'm posting this question in lieu of a debt that I do in fact owe. I am trying to set this right, but I am having a difficult time figuring out how I'm protected and how to proceed. I have read through Debt Collection Practices FTC and FDCPA, but I'm hoping for a little bit more information.

In September of 08, I had four wisdom teeth removed due to pain. I do not have insurance and made a plan to pay $1318 in 4 $300 installments.

I made two of them before I fell behind on my other payments. My mother's disability was canceled and I did my best to take care of her. I prioritized my bills and set this one as one I'd get back to.

I set it aside for too long and my dentist sent me to collections with an interest charge of $39.34. It is completely my fault, but I am trying to set it right.

I sent in a request for validation of the debt to buy a little time to figure out how to handle this. They sent me just my invoice from the dentist office. Unsigned, without any documentation stating they own the debt, or that they have the right to charge interest (still questioning).

I sent them a request to settle, stating I can afford $200 monthly payments until the debt is paid in full. Never acknowledging that I actually have liability to the debt, as I believe that may hurt me.

They denied stating "They do not accept partial payments, I have five days to pay, or contact their office for a plan."

I contacted the office and received an angry return call, starting with yelling and telling me to shut up and that I'm not listening to the debt collector. He stated that they are not a bank and partial payments are not allowed. The plan the office is offering is to allow me to pay by the end of the month after I submit a financial statement over the phone. He stated that this can lead up to wage garnishment by his company (questionable, only courts can do that, did he make a false statement, does that effect me?).

I refused and scheduled an appointment in person on Monday if they really want to set up a financial statement.

I contacted the Dentist office yesterday regarding the debt. I let the dentist know that I am willing to pay the debt in payments and I am really sorry I let it drag it out this long. My amazing dentist completely understood and contacted the agency. They stated that he consigned the debt over to them and he no longer has control over it. So I MUST negotiate with the Debt Collector. The dentist is willing to do anything I can come up with to help me after I explained my entire situation.

The dentist is making another personal call today on my behalf hoping to change this, but I don't see it happening for us.

So I plan to go in on Monday, let them know my situation, dispute the interest charges and overall see what happens. The only thing I don't want this to do is end up on my credit report. As of right now, they have not reported anything and Professional Recovery System's website states for clients that it reports after 60 days. I'm still within that time period.

I'm really trying. I messed up pretty bad, and want to fix this, but I fear that they will attempt to get me to pay up when I don't have the money. If I do settle with the debt collector for less than owed, I will pay the dentist for the work he had done and the less amount over time, but I don't have all the money to make this go away right now.

I'm a food server, so I make cash every night, so I'm not too worried about wage garnishment as my paychecks are so little. Due to my family problems I am in about 15k debt for all my family's expenses. I've taken on a lot, I just would like a little sound advice.

Should I keep pushing a payment plan to pay in full? Or should I settle for less at the end of the month, (about $350 1/2 of total debt)? Is there a way to increase the likelihood of it not ending up on my credit report?

I'm a bit confused about the concept of the assigned debt. So the debt is still legally the dentist's right? So I can work around the debt collector if necessary, if that's true. Professional Recovery System's website states:

"We are on-line with Experian, Trans Union and Equifax, the three major credit reporting companies serving the United States. We obtain an abbreviated credit report on all accounts assigned for collection. With our client's permission, we list all accounts assigned after sixty (60) days that are still unpaid with the three National Credit Reporting companies. This sixty (60) day time can be modified based upon our client's requirements."

Does that mean the dentist must be willing to report to the credit agency? If so, could I send a cease and desist letter and then ask the dentist to not report it, and wait until the debt is sent back to the dentist to rework my plan with him?

Thank you for reading and all responses appreciated.

 

Thank you very much.

The dentist called the collection agency and they stated that in the document he signed (I need to see if I can get a hold of it) that he cannot accept payment from me and I must deal with the debt through the debt collector.

This debt collection agency is very harsh, but I think with the right laws, I can go around them. They wouldn't even let the dentist pull it back with his agreement to pay his percentage to them (probably because they wouldn't get it directly, or until I paid the dentist).

It seems that the debt collection agency is contracted to report to the CRA, but needs the dentist's permission first. Is that possible?

On the initial collection letter it states:
"As required by law, you are hereby notified that a negative credit report reflecting your credit record may be submitted to a creditpreporting agency, But we will not submit a negative credit report to a credit-reporting agency about this credit oblicgation until the expiration of the time period described above [30 days]"

The dentist really is willing to work with me, but he is less likely to fight a bully unless I have proof that he can pull it back. Sadly, he is more likely to believe a CA about his contract with them, than me without proof.

So what should I do next?

I'm thinking cease and desist to the CA. Talking to the dentist and asking him not to allow the CA to report to the CRA. Waiting until it goes back to the dentist (CA said they won't allow him to pull it back from them, not sure what to do about that, must be a workaround), then rework my payment with him.

Does the CA have the right to post to the CRA, or maybe the contract with them he gave them permission to, can he revoke that from CRA's?

Sorry about all the questions, it's the weekend, and the CA is unavailable, I'd like to talk to my dentist some more, but it's a work day.

Thank you so much for all your help.

 

Sorry, I don't mean to argue, I'm trying to educate myself as much as I can before I start talking to the collection agency. I wasn't sure about the interest charges, I was just asking.

The debt was assigned the collection agency, not sold. The dentist receives money only if the collection agency receives money (told to me by the dentist). If it was sold, the dentist has already been paid and is out of the loop, right?

The question is about an assigned debt, I have no reason to believe that the debt was sold, as the first letter from the collection agency stated that it was assigned the debt, the dentist told me he consigned the debt (pretty much same thing, right?). So do I have a right to handle the debt with the dentist?

Honestly, I'm not looking for a huge legal loophole or anything. I intend to pay the debt. I just want to find the best way possible to pay the debt. I've read stories about collection agencies going bankrupt and not paying the original creditor, in which case, I still owe the OC.

So again, in the case of an assigned debt, does the OC have the right to have the CA not report it to CRA's, and if the CA's sue, would it be on behalf of the OC, in which case, I can renegotiate with the OC? If I send a C&D, will the debt go back to the OC?

Thank you for your help, everyone.

 

Oh for the arguing bit, I was referring to Dumb Bob's comment on the interest charges.

Trying to figure out the plan.

These are my current assumptions about this, if I'm wrong about any of this, please correct me, I'm really trying to do my best. It's a lot of information I've been getting to over the past few weeks.

If the CA sues, it is on the behalf of the dentist correct? The CA cannot sue on behalf of themselves because they don't own the debt. So if I send a C&R, won't the collection be sent back to the dentist to sue or collect? Unless the dentist assigns the CA to sue as well.

My plan, if that is all true is to contact the dentist again, ask him if he can tell the Collection Agency not to report to the CRA. I will send a C&R to the Collection Agency and let them know I will be dealing solely with the Dentist (Original Creditor). Hopefully that will have the collection sent back to the dentist who is willing to work this all out with me.

My only problem is I'm not sure if the Collection Agency has the right not to allow the dentist to collect from me. If they are collecting on behalf of my dentist, can't I just bypass them and go directly back to the dentist? Can the Collection Agency act (reporting to CRAs, sue) without the dentist's approval?

 

I'm running out of time on the 60 days before they file with the CRA's.

I'm contacting the dentist tomorrow to let him know that I've borrowed $500 to finish off this debt and ask him what he would like me to do. I'm going to ask for the contract that he signed with them, so I know. If in fact they cannot report to CRA's because his agreement does not allow it, I'll file a C&D and see if it gets sent back to his office.

Honestly, I would rather pay him than the debt collector. And he'd be more flexible with the payments. But if it comes down to it, I'll just have to pay the debt collector.

However, there is now about $50 worth of interest tacted on from the initial claim.

Is that legal? Since it was never in any agreement with the dentist to include interest, it's solely on the debt collector.

Any final ideas? I intend to settle the debt within the next few days. As of yet, there are no negative credit collections on my credit report. I want to keep it that way.

Thanks everyone.

 

So, all is done, and I am posting a good update just for anyone who is in search of hope, or has followed the thread. I want to say thank you to you all.

I sent in my PFD at four days ago and did not receive a response yet, which is understandable as it has only been four days. But I knew my time was running out, so I scheduled an appointment to come into the Collection Agency to discuss my settlement for the account in full.

The manager assigned to my account was not there and to start, I was greeted pretty aggressively, I figure most people who come into their office who are not there to request services are considered debtors who are as low as dirt, when usually, it's just people who are struggling financially in these hard times.

Instead of the manager who was supposed to be assisting me this morning, I instead met with the CEO of their company.

I spoke with a smile, laid out all my points regarding the matter, stating I did attempt to make payment, I did contact the the original creditor to work sometime out, the agency did deny my payment proposal, I was harassed by the collection agent, deemed illegal by the Federal Trade Commission and the Fair Debt Collections Practices Act, and I may pursue legal action on their agency. I requested a goodwill consideration for a deletion of the tradeline in exchange for a full payment, right then right there.

The CEO did not budge. He was quite friendly and explained to me that he has a contractual obligation with the Credit Reporting Agencies to file truthful information regarding the account and he can only delete if there is some sort of evidence of a true dispute regarding an error. He agreed to adjust as paid in full. And he agreed and advised me that if I had any problems with their agency, I should report a complaint.

At that point, I just as much gave up. Which some people on this forum may have advised against. But I decided to show some humility and own up to my debt and deal with the consequence. As I was writing the check though, he went through my file, and did notice I did attempt to make payments, through the dentists office, and that my collections was reported just 3 days ago to the CRA's.

He asked me what I felt and I told him that this tradeline will have a hard effect on my life. I was sad that if I had only paid three days earlier, this all could have been avoided. I told him that I had intent to find an apartment for school in the next month. He agreed that this would make it difficult for me.

He then did something unexpected. He said "Well, you know, we generally aren't allowed to do this, and I can't sign the contract you brought in, as it goes against my contract with the agencies, but I will have this deleted off your credit report, you have my word in lieu to your contract."

I was in awe. I thanked him graciously as I had already finished writing the check by the time he told me this. At that point, he had no need to make me a promise like that, but under some sort of will, he decided to give me his goodwill. He walked me up to the front desk and told his staff to accept my payment and delete the tradeline on my account. Although he did not give it to me in writing, his staff did on my report stating that it will be deleted, on behalf of their CEO.

I ended up joking with his staff about work for a few minutes before I left.

So it all ends well. They are submitting the documents today and the tradeline will be deleted as soon as the credit reporting agencies respond.

Thank you everyone for your help.