Collection Agencies (NRR)

Tonearm_Robbery

You all are some smart-dumb cats, so I wanted to see if any of you would be so kind as to share some knowledge or experiences with said subject.Not to get too deep in to my financial history, I need to really take a pro-active approach to cleaning up my credit. That being said...I've recently been contacted by a Collection Agency about an outstanding debt that I have no real memory of. I think it might be for an old Emergency Room visit when I wasn't at the top of my job-with-benefits game a few years back (which gets me pissed about the state of health care and the fact I'm in trouble for getting hurt, but that's a whole other rant).Regardless, the amount that is claimed that I owe seems to be greatly inflated, which the Agency claims in the letter is due to interest and penalty fees. The letter refuses to name the origin of the debt or the original amount and claims that I must immediately make contact with them and pay in full to avoid legal action.Now I want to know a few things that my internet research hasn't really cleared up..A - What are my rights?B - Can I demand proof of who the original debt is owed to and what the original debt was?C - How can I haggle with them about the debt (by this I mean, it's been commonly suggested to me that you can usually get away with paying only 50-60% of the original debt if you "play hardball with them")?D - Can you get charged "interest" on a debt or is this the Collection Agency tacking on some fee to get their cut?Any information or advice would be greatly appreciated.I'm going to lunch and will check back with you guys in an hour or so.Thanks again.

CousinLarry

Did they include a paragraph about the fair debt collection act in their letter too you. http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm

Check the link. Respond to their letter in writing and ask them to send you proof of the debt.

DjArcadian

I found this on Google. Looks helpful.

http://www.ftc.gov/bcp/conline/pubs/credit/fdc.shtm

EDIT: Beaten to the punch.

Tonearm_Robbery

Word. Thanks guys, but I was actually looking for anyone that had more experience in negotiating the price down - somthing to that nature.

Anyone?

Burns

you will be able to consolidate your debt not decrease it, unless you file for chapter 7/13

HarveyCanal

My best advice for dealing with collection agents would be: If you don't recognize the number on your caller id, don't answer the phone.

jlee

Word. Thanks guys, but I was actually looking for anyone that had more experience in negotiating the price down - something to that nature.

Anyone?

I've never had to do it (thankfully), but it may be possible, depending on how the Collection Agency does business.

If they are hired by the company/hospital to collect, then probably no. In this scenario, the collection agency would get a portion of your amount and then pay the company the original amount you owe.

But, if they are a company that bought your old receivable from the hospital, then you may have some leverage. In these scenarios, the hospital (thinking you will never pay) has written off your debt. So a collection agency goes in a buys the receivable at a deep discount, lets say 30% of your total. They (the agency) will then come at you like you owe the whole thing and so long as they get more than the amount they paid the hospital for, they are in the black.

in short, most places would rather something as opposed to nothing, so you should be able to negotiate some lesser amount (at least taking off your interest).

but keep in mind your credit score. i've heard that hospital dues don't count against your credit score, but i don't know that for sure.

Birdman9

Word. Thanks guys, but I was actually looking for anyone that had more experience in negotiating the price down - somthing to that nature.

Anyone?

I guarantee that you can get it negotiated, my advice (I know it's costly, but I think $$ well spent) is to get a lawyer to send a letter and rep you if possible. Maybe even see if any law firm does pro bono work of this nature. These agencies always sit up and take notice if a lawyer is signing the correspondence.

First thing to do is get your free credit report and see if that is on there. If it's over 5-7 years old and it is NOT showing up, they don't have a lot of leverage if they can't provide the original bill source (at least that is my understanding), cuz if it was already on there and since fallen off, they are selling wolf tickets and probably just hoping you will pay without any negotiation. You may not legally even be responsible for it at this stage(meaning they may not be able to legally get that money or a judgement,but check with a lawyer about all that, do not take my word). I imagine jurisdiction means a lot too.

Birdman9

but keep in mind your credit score. i've heard that hospital dues don't count against your credit score, but i don't know that for sure.

can anyone verify this yea or nay?

My response was assuming that this was a collection agency that is collecting a bad(old) debt.

resk

I was once called by a collection agency for a 1500 dollar ER visit. I was like this cant be right, and asked the hospital, they told me it was some hospital in some small city in florida i have never heard of nor have ever been.

anyways, i told them that there has to be some confusion, i have never been in that town in my life, and it was like, oh im sorry, we will stop calling then. Though this truely wasnt me, i hadnt been in an ER in almost a decade.

Dont know how common your name is, mine (in miami at least) is fairly common, stereotypical latin name.

Mine was simple to resolve, fortunately.

Tonearm_Robbery

Thank you all for the insight and advise.

I'm thinking I'm going to respond back and see what they have to say.

This is a very curious time in for my credit history (is a NO HOMO in order for that one?).

Since I've just completed my second year of my car payments without any yellow flags or fuck-ups (I dont know what you would call them?), something major must have happened to my credit score, because it's been nothing but Pre-Approved Credit Cards and old Debt Collectors assulting my mailbox.

Anyway, thanks to all who chimed in.

cantescapebreaks

Medical collection do count and will lower your score. Lenders just tend not to be as apprehensive to lend you money if the low credit score is due to medical reasons rather than a foreclosure or repossession, for example. If this debt is years old and you are just concerned about your score, and not the actual debt, then I wouldn't pay it unless its required by an institution from which you are trying to get a loan.

Collection companies are shady so definitly ask for proof they own the debt. They will give you the run around but should be willing to negotiate the amount. Be sure to get a letter on letterhead, referencing the account number that appears on your credit report that states the collection is paid in full. Legally the collection is supposed to send this letter to the 3 major credit repositories within a set amount of time but more times than not, they fail to comply with this.

Also be careful, sometimes when you pay a collection and the collection agency updates the credit repository that collection suddenly shows as an active tradeline and can temporarily lower your score. Note that collection will still be listed on your credit report for seven years, the tradeline will just be updated to show it was paid.

PS you can get a lot of good info about how credit scores work at http://www.myfico.com/ . Avoid the forums.

Tonearm_Robbery

Many thanks.