Greetings all! I have what I hope will be an easily answered question by the "elders" on this board ... A relative was paying off a hospital bill through the hospital's billing service. Same steep minimum payment each month. The local economy tanked and relative made no payment or a reduced payment for a couple of months. The billing service stopped sending bills. A call was made to find out why and the billing service said the hospital took back the account. A call to the hospital. Hospital representative said the billing service told the hospital that the relative had defaulted on the payment arrangement, and now the account has been turned over to one of this board's favorite (sarcasm) collection agencies with the same initials as the following words: "Oscar Sierra India." Indeed a letter from the CA arrived, and it's doubtful that payment can be made in full before the collection shows up on the relative's credit report. I'm advising the relative to send the CA a letter asking for verification that relative owes the money. Assuming the CA responds with verification, if enough cash can be scrounged up, should a pay for delete offer be made to the CA? I'm guessing it would be better to make a pay for delete offer to the original creditor - the hospital - but what if the hospital refuses to deal directly with my relative and insists that the process be worked through the CA? Thanks for your help!
It depends how stubborn the hospital will be about it. Are you sending the dispute letter just to stall for time? It would be advisable to send the PFD to the hospital and offer a full payment ASAP. If the hospital refuses it, you could try to send it to OSI. That would look odd to OSI since you just sent them a debt validation letter though, but it may actually work in your favor. If they don't want to go through all the hassle of verifying the debt, they might just sign the PFD and be done with it.
My relative just spoke with the hospital, and it's being as stubborn as can be with regard to dealing direct. In addition, I just found out that there is no way for my relative to scrounge up enough money to pay the bill in full to ANYONE, including the CA. No letters have been sent yet. Stuck! Help. Thanks!
Forgot to add that the letter from the CA states that "this account(s) may be eligible to be reported to the national credit bureaus on orafter 11/28/2007if the account(s) is not paid in full. Well, there's money to pay a little bit on the account every month, but not what my relative WAS paying. If its paid bit by bit to a collection agency though, it still results in a negative on my relative's credit report, right?
If the balance is not paid in full by that date they can report the negative information if valid. If you call them and work out a payment arrangement before the reporting date, you may be able to have them agree to not reporting while being paid. I've done that with all new accounts I get. I will give the debtor the chance at first to pay 3-4 payments and be done with it and it never be reported, as long as the payments are credit/debit card or check over the phone and the first payment is before the reporting date. If she fails to make even 1 payment it will be reported. If they agree to it, get it in writing, if you choose to try that. The hospital is doing exactly what most will, refusing to deal with it at this time. If you send them a PFD, more than likely they will not respond or just send it back to you with the phone number to OSI.
If you dispute the account it can still be reported but it will have to be reported as account in dispute...if I remember correctly?
Thanks much! He's at the point where today, he sent a certified letter disputing the debt, and asking for documentation that he owes it. (He really don't know how much he's paid, if all payments have been properly credited, etc. For all he knows, the insurance may have messed up but the only way to know that is to go through all of the information) I'm guessing that OSI will need to provide that information before reporting it to a CRA and that OSI has 30 days to do that?
No, OSI will report what they have with the notation, account information disputed by consumer, or something to that effect. If the information comes back different they will amend the tradeline, if it's reported.
