Clinic sends my file to collection agency, after I have explained that insurance has paid them. Collection agency sends first collection letter stating that I owe $890 to which I respond with a dispute letter stating that I think I only owe $350.00. I needed to go back to clinic. Clinic has me pay $45.00 office visit upfront. Since co-insurance was met, insurance company paid $45.00 to clinic which they forwarded to collection agency. Collection agency does not respond to my letter and next thing I know I am served with limited action suit. Appear in court (attorney for collection doesn't because of weather), file answer. Then a trial is scheduled. Three working days before court date, collection agency calls and pushes me to settle for the $355.00 + court costs and a reduction of 60% of the interest. I review my records and see that I only owe $304.00, which I brought to their attention. They stated that they are sticking to the $355.00 because that is what i had in my dispute letter. I said I still disagree and I will see them in court on Monday. Should I have settled? Or does anyone think that I have a good case to prove to the judge showing that 1.) Obviously someone at clinic was not doing their job. 2.) That I attempted to resolve the problem. 3.) That the idiots still don't have the correct amount and judgement should not be entered based on these facts?
You are only talking a few dollars difference here. IMHO, you should have settled. If they are entitled to judgment, they will get it whether it be for $304 or $355. It really isn't worth the $51.00 to then have a judgment reporting on your credit report. Settled is better than a judgment. If you owe this money and the SOL hasn't run, I'd be calling them back fast and taking them up on their offer. But that's just me. L
I am a bit confused. How did they arrive at such exhorbidant interest? Have they pulled copies of your credit report. If so, under what authorization? they're not creditors and business transactions are for eligibility only. If they're claiming this is credit, were you ever given disclosures? Truth in Lending documents? anything? If you go in and say you think you only owe x... the judge will likely then give them a judgment for x and not for y. If you can ammend your response... I'd go after them. Try to find fdcpa violations, fcra violations, reg z violations... I think what they're doing to you is extortion...
Interest is 1% per month or 12% per annum. Just to clarify total bill was $890 which the insurance has paid all but $304. They just didn't do their job and apply it to my account. Instead of trying to resolve the problem when I made them aware of it, they just try to get judgement against me for the entire amount. I will agree I owe the $304. I guess I'm standing on principal and not going to pay them twice. The difference between what they say I owe and what I really owe is the payment that the insurance company made to the clinic which was forwarded to the collection agency. The judge told me that I will be able to discuss this with the collection agencies attorney prior to trial. If no agreement is reached, the judge will then rule on this. Thanks for all your help so far!
