medical bills in collection

[gregse]

What is the name of your state? Indiana. Can a collection agency transfer money from a paid off account to an older account? I had a medical bill in collection for 2001. I paid the bill in full Oct. 2002. March of 2004 I received a call that I still owed money on the 2001 bill. When I asked how, the collection agency explained that they had found an older bill from 1996... took the monies from the 2001 bill (that had been paid off) and applied it to the older bill... which now leaves a balance on the 2001 bill. This all transpired in March of 2004... Can they do this? When I asked for documentation on the 1996 bill they told me they didn't have it... they have it for the 2001 bill.... Any help you can give me on this, I would appreciate!

 

[Ladynred]

NO, they can NOT do that. They cannot just arbitrarily assign your funds to any account they choose. Did your payment refer to a specific account for the 2001 bill ? If so, then they are definitely in the wrong here.

 

[gregse]

Thank you so much for you advice! I am at my wits end on this...Yes, the bill in 2001 was for a specific account...and amount....I received a phone call yesterday after posting this message on this site, and believe it or not, they now tell me that I made a "payment" in March.... I have not sent them any monies since Oct. 2002.... What they have done is transferred the monies to look like a payment to the old account. I have asked them to send me all of this information in writing as to the bill from 1996 and 2001 showing all payments etc. They told me that they couldn't send me anything from 1996, because it was to old and they didn't have the back up... but they could send me the info on the 2001 bill. I told them again, that I didn't need the info on the 2001 bill, because I already had it, and had paid that account in full.... What do you suggest I do next????

 

[Ladynred]

Had they not pulled a fast one, the 1996 bill is past the statute of limitations for medical services - 4 years per the UCC.

Send them a validation letter, per the FDCPA, once you demand validation, they HAVE to provide you proof - including full documentation of what they allege you owe.

Per Section 810 of the FDCPA, they have already violated the law when they decided to apply your 2001 payment to the old debt.

"§ 810. Multiple debts [15 USC 1692h]

If any consumer owes multiple debts and makes any single payment to any debt collector with respect to such debts, such debt collector may not apply such payment to any debt which is disputed by the consumer and, where applicable, shall apply such payment in accordance with the consumer's directions. "

So, I would put that into your letter, quoting that section of the law. They are in the wrong and you need to hammer them with that.

You can find info on how validation works at www.creditinfocenter.com. There are sample letters for you to use there.

Send everything CRRR.

 

[gregse]

medical bills and privacy with them

IN & Il I have a 24 year old daughter who is not on my insurance coverage, pays her own bills etc. she went to her doctor at a local clinic, and they sent her to a collection agency, because of a bill from 1996 that I supposedly owe...They told her that she needed to pay this bill or make arrangements to pay my bill before she could see her regular doctor. I might also mention that this bill is being questioned, due to the fact that the collection company just informed me of this bill, and that they cannot produce any information on this bill other than the amount. Can they clinic do this? Can the collection agency do this? Any help on this I would appreciate. I live on the state of INdiana/Illinois border, and this particular clinic is in Il.

 

[Ladynred]

Boy these people have a set of brass ! They can NOT hold your adult daughter's medical care hostage for YOUR bills ! Who the hell do they think they are anyway ? She is not responsible for your bills and certainly not for one that is in dispute.

You need to talk to the people at the practice/clinic and ream them a new one, that's just pure crap. Ask them what law exists that says children are responsible for their parents debts ??? What law exists that says they can hold ANYONE but YOU liable for a debt ??? If they give you a hard time, its time for an intent to sue letter from you and your daughter needs to complain to whatever authority governs the medical providers in your state. You might also take it to your state AG's office,what they're doing is way off-base.