creditorRights
Member
What is the name of your state (only U.S. law)? New York
I just want to give the readers on this forum some insight about the practices of debt collectors in the State of New York. I have worked in a debt collection Attorney's office for 8 years, I started as a filing clerk and now I am in charge of judgment enforcement. The firms biggest clients are NYS hospitals (Our Lady of Mercy Med Center, Brookhaven Hosp., Montiefiore Med Center, South Nassau Communities Hosp, Sound Shore Med Cent to name a few)
The early stages: Hospitals send out bills, religiously. They get generated from a computer and mailed out every 30 days for 6 months before the hospital will move it to "legal status" and send it to a collection agency. Please be aware this debt is not SOLD to the CA, but rather the CA is hired by the hospital to collect the debt on a contingency basis.
The CA also doubles as a past due billing agency, so if there was any kind of insurance issues (no fault cases, medicaid, miscommunication at hospital) the CA can bill the insurance company and get paid. The CA will also make phone calls (about 600 in a year), write letters, if there is no response the claim then gets fowarded to the Attorneys office for collection, please note at this point the debt is NOT sold to the Attorney but rather the Attorney is hired to collect the money for the hospital. I've seen this done two ways 1) on a contingency basis 2) with an upfront suit fee and no contingency on any money collected.
At this point the Atty will review and accept or reject the claim and add it to his system. The first letter to go out is a validation notice, telling the debtor he or she has 30 days to dispute the validity of the debt in writing (if they do, then the Atty will foward a copy of the medical bills). If there is no dispute or payment arrangement made then 35 days after the first letter a summons and complaint is issued.
The summons in itself is fascinating, unfortunately for debtors - NYS has very very lax service law. You do not need to be personally handed a summons in order for the service to be effective, it can be affixed to a door after 3 different attempts or left with someone of suitable age (which is 14 or older). This may frequently lead to the party(s) within the action not actually knowing they are being sued. This is where most payment arrangements and settlements are made. If one fails to answer the summons within 20 days of the proof of service if you were personally served - 30 days if you were not, then a default judgment is entered.
Notice of entry of the judgment will then be mailed to the debtor. The debtor then has 7 days before blanket or canvas restraining notices with information subs are sent out to every major bank in the State of New York. If the Attorneys office knows where a debtor works sometimes they will just skip the RN's and go straight for a first stage income execution with the marshall or sheriffs office. New York State judgments can be enforced for 20 years, and with every payment made the 20 years is renewed.
If you have any questions or feel like I missed anything that has happened to you (I did not get into property executions by a levying officer, transcripts of judgment, liens on real property) please let me know and I will do my best to give a complete answer.
I just want to give the readers on this forum some insight about the practices of debt collectors in the State of New York. I have worked in a debt collection Attorney's office for 8 years, I started as a filing clerk and now I am in charge of judgment enforcement. The firms biggest clients are NYS hospitals (Our Lady of Mercy Med Center, Brookhaven Hosp., Montiefiore Med Center, South Nassau Communities Hosp, Sound Shore Med Cent to name a few)
The early stages: Hospitals send out bills, religiously. They get generated from a computer and mailed out every 30 days for 6 months before the hospital will move it to "legal status" and send it to a collection agency. Please be aware this debt is not SOLD to the CA, but rather the CA is hired by the hospital to collect the debt on a contingency basis.
The CA also doubles as a past due billing agency, so if there was any kind of insurance issues (no fault cases, medicaid, miscommunication at hospital) the CA can bill the insurance company and get paid. The CA will also make phone calls (about 600 in a year), write letters, if there is no response the claim then gets fowarded to the Attorneys office for collection, please note at this point the debt is NOT sold to the Attorney but rather the Attorney is hired to collect the money for the hospital. I've seen this done two ways 1) on a contingency basis 2) with an upfront suit fee and no contingency on any money collected.
At this point the Atty will review and accept or reject the claim and add it to his system. The first letter to go out is a validation notice, telling the debtor he or she has 30 days to dispute the validity of the debt in writing (if they do, then the Atty will foward a copy of the medical bills). If there is no dispute or payment arrangement made then 35 days after the first letter a summons and complaint is issued.
The summons in itself is fascinating, unfortunately for debtors - NYS has very very lax service law. You do not need to be personally handed a summons in order for the service to be effective, it can be affixed to a door after 3 different attempts or left with someone of suitable age (which is 14 or older). This may frequently lead to the party(s) within the action not actually knowing they are being sued. This is where most payment arrangements and settlements are made. If one fails to answer the summons within 20 days of the proof of service if you were personally served - 30 days if you were not, then a default judgment is entered.
Notice of entry of the judgment will then be mailed to the debtor. The debtor then has 7 days before blanket or canvas restraining notices with information subs are sent out to every major bank in the State of New York. If the Attorneys office knows where a debtor works sometimes they will just skip the RN's and go straight for a first stage income execution with the marshall or sheriffs office. New York State judgments can be enforced for 20 years, and with every payment made the 20 years is renewed.
If you have any questions or feel like I missed anything that has happened to you (I did not get into property executions by a levying officer, transcripts of judgment, liens on real property) please let me know and I will do my best to give a complete answer.
