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  1. #1

    Default Collection of an Unpaid Debt to a Hospital

    My question involves collection proceedings in the State of: California

    Hello,

    I’m looking for some advice and any information to help me sort out my issue. I apologize for the many questions I’ll have in advance.

    In June 2009 I was involved in a car accident that sent me to the ER at a county hospital. At the time, I was unemployed and had no insurance. I was unable to pay the bill in full. I've attempted to seek financial aid in person from the hospital but they denied me since I was not living in the county they serve. The hospital said to seek financial aid from the county hospital in the county I live in. I then went in person to ask, but since I was not treated at their hospital I was not eligible. Months pass by and the hospital placed my bill to a collection agency. I received a letter from the collection agency on Dec 2009 saying that the debt has been placed with them, I owe the full amount, and I have 30 days to dispute or it will be assumed valid. I called the collection agency few days later talking about possible payment options, that I couldn’t afford full amount, but never made a payment. That was the last time I ever had any contact with them. To this day, I never received any phone calls or letters for payment and I've since let the debt sit.

    I recently checked my credit report and the medical debt from the collection agency is listed there. It says it is placed for collection on Dec 2009 and was that it was recently updated Mar. 2010.

    -Was it legal for the collection agency to list my debt on my credit report? Was calling them to talk about it enough to validate debt?

    -Does the time for the statute of limitations start when I was billed from the hospital, from when it was placed with collections, from when I called them about it, or from when it was updated on my credit report?

    -Should I wait for the statute of limitations time to pass before I attempt communicating with them again? I haven’t received any contact from them since the day I called them to talk about it in Dec 09. It has been over 4 years since the accident and nearing 4 years from the date they sent me a bill to pay in full.

    -Why wouldn’t I have received any communication from the collection agency since the day I contacted them?

    In the meantime, I’ve been working the past 3 years, finally got insurance through my job, paying off credit card debts on time, and putting away any money I can for this debt.

    Realistically I’d like to negotiate to settle the debt and have it removed from my credit report, but I am not sure when to begin that process.

    Any advice for what to do? Keep putting money away and wait for SOL to pass before attempting communication?

    Thank you and kind regards,

  2. #2
    Join Date
    Oct 2013
    Posts
    101

    Default Re: What to Do About a Medical Debt Sitting with a Collection Agency

    Did you try to work out a payment plan with the hospital? That would seem to be the place to have started when they denied you charity care. At this point it may be too late for that but I'll add it anyway. Some hospitals are willing to set up payment plans for uninsured clients.

  3. #3
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: What to Do About a Medical Debt Sitting with a Collection Agency

    What to Do About a Medical Debt Sitting with a Collection Agency
    before even reading the rest, one thought comes to mind:

    pay it


    anything else?






    -Was it legal for the collection agency to list my debt on my credit report?
    sure. why do you even question this?

    Was calling them to talk about it enough to validate debt?
    you called? I'm betting that is what you would hear if you ask them but that doesn't affect it being reported in this case anyway.

    -Does the time for the statute of limitations start when I was billed from the hospital, from when it was placed with collections, from when I called them about it, or from when it was updated on my credit report?
    it is from the date the debt was incurred

    -Should I wait for the statute of limitations time to pass before I attempt communicating with them again? I haven’t received any contact from them since the day I called them to talk about it in Dec 09. It has been over 4 years since the accident and nearing 4 years from the date they sent me a bill to pay in full.
    it's up to you. Apparently you simply do not intend to pay this bill so why do anything? If they sue, respond with a defense the SOL has run.

    -Why wouldn’t I have received any communication from the collection agency since the day I contacted them?
    You would have to ask them

    Realistically I’d like to negotiate to settle the debt and have it removed from my credit report, but I am not sure when to begin that process.
    extremely unlikely that is going to happen but to start the process, you contact whomever owns the debt at this time and say; I would like to have this removed from my credit report. What would it take to have that happen?

    take note that if this is reported by the hospital and an entity that purchased the debt subsequent to your default, accept that it is not going to be removed from your credit report by both entities, even if you can negotiate its removal with the current owner of the debt.

    Any advice for what to do?
    well, again, paying it because you owe it comes to mind but apparently you aren't to keen on that idea.

  4. #4

    Default Re: What to Do About a Medical Debt Sitting with a Collection Agency

    jk, Thank you for taking the time to reply. Its been insightful.

    Quote Quoting jk
    View Post
    before even reading the rest, one thought comes to mind:
    pay it
    anything else?
    If I had 18k laying around I would have paid it. At the time I was unemployed, uninsured, had credit debts, student loans, not to mention the legal fees and court collections I already paid for the accident itself.

    sure. why do you even question this?
    I question it because I'd like to know if the debt was validated by me calling to talk about it, allowing them to post it to my report legally.

    you called? I'm betting that is what you would hear if you ask them but that doesn't affect it being reported in this case anyway.
    so are you saying that since the hospital sent it to the collection agency, they would have had enough verification to assume validity?

    it is from the date the debt was incurred
    just to clarify, this would be the date the hospital(original creditor) sent me the first bill, correct?

    take note that if this is reported by the hospital and an entity that purchased the debt subsequent to your default, accept that it is not going to be removed from your credit report by both entities, even if you can negotiate its removal with the current owner of the debt.
    so even though it is listed once in my report under the collection agency is there another listing somewhere from the hospital not in the report? would it be obvious if the hospital reported it to my credit?

    well, again, paying it because you owe it comes to mind but apparently you aren't to keen on that idea.
    if i could have afforded to i would have no question.

    Thanks for the replies again, much appreciated.

  5. #5
    Join Date
    Jan 2006
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    38,867

    Default Re: What to Do About a Medical Debt Sitting with a Collection Agency

    If I had 18k laying around I would have paid it. At the time I was unemployed, uninsured, had credit debts, student loans, not to mention the legal fees and court collections I already paid for the accident itself.
    so why should the hospital take the hit? They are the ones that actually helped you. Yes, at this point it is a moral issue and I have a hard time with people not paying their bills.



    I question it because I'd like to know if the debt was validated by me calling to talk about it, allowing them to post it to my report legally.
    that made no difference. They could report it anyway whether you called or not.



    so are you saying that since the hospital sent it to the collection agency, they would have had enough verification to assume validity?
    the bill is considered valid unless disputed. and verification of a debt is for a 3rd party collector or owner of the debt. All it amounts to is them contacting the original creditor (OC) and the OC providing a statement that yes, your name is correct and you own $XXXXXX.xx that really is it.



    just to clarify, this would be the date the hospital(original creditor) sent me the first bill, correct?
    technically it is from the date the debt accrued which is technically when service was provided. Given the very small window from that time to the actual creating the billing is so minimal that the date the bill was created is what is going to be used generally.



    so even though it is listed once in my report under the collection agency is there another listing somewhere from the hospital not in the report? would it be obvious if the hospital reported it to my credit?
    it could be and yes, it should be obvious. It will look pretty much the same as the collection agency's report only with the hospital info replacing the CA info.

    given the issue, I would not hold my breath on a pay for delete but you can always try. Just be cautious you do not take any action that resets the clock on the statute of limitations.

  6. #6

    Default Re: What to Do About a Medical Debt Sitting with a Collection Agency

    Quote Quoting jk
    View Post
    given the issue, I would not hold my breath on a pay for delete but you can always try. Just be cautious you do not take any action that resets the clock on the statute of limitations.
    What kind of actions would reset the clock on the statute of limitations?

  7. #7
    Join Date
    Jan 2006
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    38,867

    Default Re: What to Do About a Medical Debt Sitting with a Collection Agency

    Quote Quoting IT Field Technician
    View Post
    What kind of actions would reset the clock on the statute of limitations?
    Offhand I cannot say for certain for california other than making a payment...any payment. I would have to do some research to find out anything else. In some states, it doesn't take much to reset the clock so proceed with a lot of caution until it is verified exactly what can reset the clock.

  8. #8
    Join Date
    Oct 2013
    Posts
    17

    Default Re: What to Do About a Medical Debt Sitting with a Collection Agency

    Quote Quoting IT Field Technician
    View Post
    What kind of actions would reset the clock on the statute of limitations?
    From what I can find in CA, a payment made by you or another liable debtor for that bill would reset the SOL.

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