Collection Agency Lawsuit/settlement

[Jack Shappa]

What is the name of your state? Utah

I owe about $477 for medical services. There was some dispute over wether or not my insurance would cover it. Turns out they will not, I have no recourse.

In the meantime the amount went to an outside collection agency. They have served me with papers and are filing suit to get the money.

I called and agreed I'd pay it, but they wanted their attorney fee now too + court cost so I'm looking at $800. They offered to "settle" for $650.

I owe the money. There is no dispute there. If I refuse the $650 can they just go get the judgement and the fees they want? I am offering to pay the $477 + $15 in interest but that's not good enough apparently. If I don't have a leg to stand on I'll pay the $650 and be done with it but do I have some way to force them to accept the $500 or so I actually owe? Or am I doomed to pay their attorney/court costs too?

- Jack

 

[Chien]

If I refuse the $650 can they just go get the judgement and the fees they want?

Yes

I owe the money. There is no dispute there.

And that's why the answer is yes.

do I have some way to force them to accept the $500 or so I actually owe?

No

Or am I doomed to pay their attorney/court costs too?

That's the reason for the no answer. You are being practical and reasonable for you both. The problem appears to be that they took a very aggressive posture, before anyone tried to "just work it out". For whatever reason, they chose to litigate, without even finding out if they could negotiate. Now they have invested in the case, and they are not retreating without recouping that additional cost. Since the money is owed, they'll win in court. A judgment will give them more power over you than they have now.

Just take the deal. It's not great, but the alternative is worse

 

[Jack Shappa]

Thank you for your quick reply. I'll pay the $650 and move on.

- Jack

 

[Chien]

If you make the deal, be sure that the case is dismissed and that you get a copy of a Dismissal with prejudice, along with a separate written confirmation of your payment.

 

[Jack Shappa]

A followup :

Went down and paid the $650. Got back a receipt stating balance is $0 with the comment "settled in full".

Turns out there was one other small medical collection related to the same thing in my "collection packet" and she said that would be part of the deal and it was also a $0 balance now. So the receipt has a collection packet # (which includes both colleciton actions in their computer) and says $0 balance. So apparently I got a little bonus I wasn't aware of (the other collection was not listed in the lawsuit).

I wrote the names of both collection actions on my check in the memo with "paid in full" just to be safe (not sure if this does squat for me).

Anyway hopefully someone doesn't say "oh wait, that other one wasn't supposed to be part of the deal!" though I have the receipt showing payment accepted and everything in that "packet" settled in full.

I will call this week and make sure the lawsuit gets dismissed and get my paperwork.

- Jack

 

[CO19]

Jack,

Also make sure that if this debt was on your CB, check in 30-60 with all 3 bureau's to be sure collection agency updated the record and reported it as paid...