I've been getting calls from a collection agency for several months but I never answer the phone and they never leave a message. I looked up the number and that's how I found out it belongs to Credit Management Company. Last Tuesday I finally answered when they called and they said I owe something like $183.06 for an unpaid medical bill from 2008. A couple days later on Friday I received a letter/bill from them stating that I owe $183.06. It gave the account number and stated that it's from an unpaid bill from the hospital. I checked my records and as it turns out I do owe the hospital $183.06. I never received any bill from the hospital which is why it didn't get paid. I suppose the bill could've gotten lost in the mail, but I definitely never received it. I'm not sure what I should do. Do I pay the collection agency? Do I pay the hospital? I don't want this affecting my credit score which is very good. I had it checked back in August/September 2009 and it was excellent. Could someone please advise me as to what I should do? Thanks.
I would contact the billing department at the hospital to determine if the debt was actually sold to the CA or if it's just been assigned for collection. If it's just been assigned, request that the hospital pull your account from collection so you can then pay them directly. If it's been sold to the CA, then you'll need to negotiate payment terms directly with the CA. The hospital probably won't talk to you and they'll just direct you to the CA. Have you pulled a recent credit report to see how this is currently reporting? If you haven't checked your credit scores or reports since 8/09, now would be a good time to do so.
I have a small problem. When I get bills from the hospital, my payment is supposed to be addressed and sent to some company rather than to the hospital. Should I still contact the hospital's billing department about this issue? Or do I contact the company that I pay the hospital bills to? Also, you stated that if the bill has been sold to the CA, I should negotiate the payment terms with them. What exactly do you mean by that? I know I owe exactly what they say I owe (they haven't added on any fees or interest) and I can pay the $183.06 in full. So I'm not sure what you mean. Thanks for the advice. I really appreciate it.
I think you should still call the hospital billing department. The address where you send payment is probably some sort of "lock box," which means that the company receives the payment, makes the deposit and records everything. But usually that part is contracted out but the hospital will have the records. If they don't they should tell you who to call. Personally, if they haven't added any interest or fees I'd pay them. If they have, negotiate to just pay the amount you owed. Joshua may have a different take, but that's my opinion.
I called the hospital but since the bill is technically in my wife's name, they won't give me any information about it. They said my wife has to call them. I tried explaining that my wife has a brain injury and I handle all the finances and that she most likely won't be able to call them. So they said they would send her a letter with all the information in it by the end of this week. I tried asking if Credit Mangagement Company is the collection agency they use and they wouldn't even answer that. There is no way my wife will be able to call them and get the information I need her to get from them. I don't know if the letter they send will have the information I need about whether they sold the debt or not. Should I wait to receive their letter before doing anything else? It's been 14 days since I answered the collection agency's phone call and about 12 days since I received a letter from them. Or should I just go ahead and pay the collection agency?
I got the letter/info from the hospital and it doesn't tell me anything I don't already know. There's no mention of the collection agency.
Then try paying the hospital. Did your wife sign a durable power of attorney? If so, you can use that to get the information. She may have also signed a release when she was admitted allowing you access to her information. I'm not sure who you'd ask about that. A reminder to everyone--you should have a living will and a durable power of attorney. You never know when something will happen and you need someone to act for you. Most hospitals will let you store a copy with them, and they'll know who to contact if something happens.
I called another number for the hospital's billing department. It's for some company that the payments get sent to. The lady there told me that the bill had been handed over to CMC (Credit Management Company). I also found out that the reason I never got the bills in the first place was because they were sending them to our old PO box that we haven't used in over 10 years. Also, one of the numbers in our phone number was incorrect which is why we didn't get the calls either. So I went ahead and updated that info. I guess this means I need to go ahead and pay the money to CMC. Should I send this payment by certified mail? Or does that not matter since I'm paying with a check? The payment goes to a PO box. My guess is that sending certified mail to a PO box would delay them getting my payment. All I want is to make sure they don't try to screw me over. I don't want them to insist I owe money even though I paid them.
Joshua recommended that you pull credit report to see how they are reporting. You can get a free one once a year at annualcreditreport. Because they have not added any fees or interest you need to make sure what the payoff is with CMC. I would call them and ask for a payoff letter that outlines the amount due, letâ??s you know if they agree to remove the line once paid, and gives you enough time to have the check sent and clear. That way you will not pay the $183.06 due only to find out that there is other interest or fees. Yes this takes sone effort but you can be assured that the problem is solved 100% and that it will not reappear. I would also explain that this was an honest mistake and ask if once paid, if they will remove the tradeline on your credit report. I would make sure I print a copy of the canceled check both sides and put it in your records with the payoff letter from the creditor. That way you good documentation if you need it. Also after the account is paid, it would be a good idea to make sure this information is either removed from the report if they say yes, or that the balance now reports as $0.00. You can also ask as a fall back position, to mark the account paid as agreed, if they will not remove it. Remember the credit reporting system is massive and no one will make sure the data gets recorded correctly but you. Once you make your payment you loose any leverage or negotiating power you have so make sure you do the work upfront.
Do I have a certain amount of time that I have to pay the bill CMC sent? They sent it something like 19 days ago, I think. The bill states, "This is to inform you that the unpaid balance on your account has been reported to the nationwide consumer credit bureau reporting agencies: Trans Union Credit Information Company, CBI, Equifax, and Experian. This debt will appear on your credit profile as an unpaid collection amount." It also says that no interest or fees are due. I am trying to do my best to take care of this the right way, but I do have to work and some of this stuff is confusing (and annoying). So, how safe is checking a credit report online? My understanding is that I have to submit my SSN and I always worry about hackers, viruses, and identity theft. Even with proper security software on my computer, it doesn't mean it's totally secure. Thanks for the help.
I just called both the hospital and CMC. The hospital says they can't do anything, it's completely out of their hands. CMC is very confusing. They said there are no additional fees or interest due. I (my wife) only owes what the hospital says I (she) owe. What's confusing is what they said about the hospital having the wrong address for me. I told them the hospital had two addresses for my wife - the street address we've had for 20 years and the PO box we haven't used in about 10+ years. I said that the hospital was sending the bills to the wrong address - the PO box which is why we never received them, and therefore didn't pay them. CMC says the account came to them in September and one of their representatives changed our mailing address from the PO box to the street address 7 days later. CMC said they normally allow 60 days at their agency before it's reported and the address was changed well before it was reported. So they're saying they sent us bills to the correct mailing address (the street address), but I told them I never got any until just now. They don't know why that is. So, because the address was changed to the correct address within the time frame, there's nothing we can do but pay the bill. Does this sound right to you all? I did record the conversation, though I didn't tell them that. The lady I spoke to gave me her first name and direct contact number, including the extension. She said I could pay over the phone with a credit card, but I declined and said I'll just send a check. I think I'd have more proof if I sent a check. Since I have this recording of the conversation where they say I don't owe any extra fees or interest, will this work as proof instead of obtaining a letter? I am so sick of this crap. It angers me that I have to deal with this because of mistakes someone other than me made. Then I have to monitor what everyone involved is doing so it doesn't completely mess up my wife's credit. Grr!
I would try asking the collection agency to remove the item from your credit report if you agree to make full payment. If this item was sold to them then all they care about is getting paid. They'll be stubborn at first but you should be able to get them to agree with a bit of negotiating.
How do I go about negotiating with them? I have nothing to offer or bargain with. I can't tell them that I won't pay unless they remove it from the credit report. I owe the money, so that doesn't seem right.
You hold the greatest bargaining chip that one can: money that they want. Why not? After all, you're not telling them that you refuse to pay under any circumstances. What seems right and what is right should not be confused. It would seem right that the CA would delete the derogatory listing upon receiving payment, but that's not going to happen--unless you specifically negotiate its removal before you pay. I can understand the moral component of paying back what you owe--indeed, it is the ethical thing to do. But please don't assume that negotiating favorable terms for yourself somehow makes the whole transaction less than 100% ethical. None of these entities are going to act with any sense of morals or ethics. They will never do you any favors. It's up to you to look out for your own interests.
Yea squid is right. The only thing CA's care about is getting paid, and you ultimately have the upper hand in this negotiation.
So what if they refuse to remove it from the credit reports, do I still pay them anyway? What they told me is that paying will improve the credit score, but it "won't make it like this never happened." They also told me there was nothing they could do. What am I supposed to say? I'll pay if you remove this from the credit report. That sounds more like an ultimatum or even a threat.
The damage to your score has already happened. The score difference between a paid/unpaid collection is negligible. Of course, they're telling you that paying will help your score, because they want your money. Yeah, they always say that. It's amazing how their tune changes once you dangle the money in front of them. That's exactly what you say. Either that, or if they agree to a non-disclosure agreement (more about that can be found in other threads). There's nothing threatening about saying that. Threats generally involve an action in response to a failure to act on the other party's behalf. You're not threatening to do anything--you'll simply do nothing. The debt, at this moment, is not being paid, and that will not change unless they remove the derogatory listing. In my humble opinion, paying this debt without negotiating the derogatory removal is throwing your money away. The damage to your report has been done, so the only way to undo that damage is to use your payment as leverage. There's nothing shady or unethical about it--it's simply business.
