Dr. Charging interest, no contract

[kat30s]

I am in California and work for a Dr's office. We have a patient who is discontinuing care with us, and has a balance due. The patient asked if she could pay it in 2 payments, one immediatly, and one in 2 weeks. The Dr. said we could hold a balance for her, but we would be charging her interest of 15%. The patient never signed a contract, just has a verbal agreement with the Dr. to make certain payments. No interest was ever mentioned. Is this legal?

 

[vrzirn]

He is lucky she wants to pay and he doesn't have to write it off as bad debt. You need to check the fine print on the questionaire where she signed up as his patient It may be legal but still hard-nosed of doctor.

 

[I AM ALWAYS LIABLE]

I am in California and work for a Dr's office. We have a patient who is discontinuing care with us, and has a balance due. The patient asked if she could pay it in 2 payments, one immediatly, and one in 2 weeks. The Dr. said we could hold a balance for her, but we would be charging her interest of 15%. The patient never signed a contract, just has a verbal agreement with the Dr. to make certain payments. No interest was ever mentioned. Is this legal?

My response:

It was a good thing that you asked. Your doctor had better speak with his attorney concerning the Federal Truth in Lending Act (Title 15, United States Code, sections 1601 et seq.) and regulations issued under that Act (Title 12, Code of Federal Regulations, sections 226.1 et seq.).

If he charges this woman interest, in any amount, he had better make sure he's in full compliance with the Act; otherwise, he could be setting himself up for a big time lawsuit for statutory penalties and other damages.

IAAL

 

[kat30s]

Thanks for your replies...I'll be sure to let the Dr. know!