Michigan Debt Collection - What To Do?

[mangosalsa]

10 months ago my dog was taken into an animal hospital due to low red blood cell count but otherwise completely healthy 11 year old dog. 48 Hours later he was dead. I paid a $1k deposit when first checking into the place and that is all I have paid thus far. The animal hospital never contacted me to collect and I figured it was because they acknowledge some responsibility for the dogs death, which I believe they are atleast somewhat responsible. Regardless, I got a letter from a collection agency demanding the remaining $4k payment. I may or may night hire legal help but I am first wondering some general questions:
1. At what point can a debt collection agency put a claim on my credit report? I have excellent credit and do not want to ruin it, but I cannot imagine that any collection agency can just ruin someone's credit but claiming they are owed money without having to prove it through some sort of legal process?
2. The letter said 30 days to pay up. I responded with a certified letter requesting proof of charges and their right to collect on behalf of the animal hospital. I have yet to hear back from them and received a second warning letter but not sure what to do?

Any help or insight is greatly appreciated

 

[Zigner]

Generally, they can put it on your credit report 30 days after notifying you of their intention to do so. They were supposed to stop collection efforts until they have verified the debt with the original creditor, but their follow-up letter may have crossed in the mail.

Have you contacted the vet for a copy of the bill? Why do you believe you don't owe the money? Other than your grief at losing your dog, why do you believe that they are responsible for the death of your 11-year old dog that had an underlying health condition?

Your best bet is to negotiate (in good faith) with the vet. From their perspective, you've simply ignore them up until this point.

 

[Taxing Matters]

1. At what point can a debt collection agency put a claim on my credit report? I have excellent credit and do not want to ruin it, but I cannot imagine that any collection agency can just ruin someone's credit but claiming they are owed money without having to prove it through some sort of legal process?

The creditor/collection agency may report the debt to the credit reporting agency (CRA) as soon as it is delinquent. The creditor/collector need not go to court for a judgment first nor take any other action prior to reporting it to the CRA.

2. The letter said 30 days to pay up. I responded with a certified letter requesting proof of charges and their right to collect on behalf of the animal hospital. I have yet to hear back from them and received a second warning letter but not sure what to do?

The collector violates the Federal Fair Debt Collection Practices Act (FDCPA) if it continues collection efforts after you have requested in writing that it verify the debt and it has not yet provided that verification. The verification required to satisfy the statute, however, is minimal.

 

[Zigner]

The verification required to satisfy the statute, however, is minimal.

To be clear - something along the lines of "Original Creditor XYZ has confirmed the amount due of $4,000 for services rendered 8/23/19 through 8/25/19" would suffice.

 

[zddoodah]

The animal hospital never contacted me to collect and I figured it was because they acknowledge some responsibility for the dogs death, which I believe they are atleast somewhat responsible.

Did someone at the hospital actually acknowledge responsibility? Or are you just speculating? Are you saying that you received a bill for the balance and that no one ever contacted you after you received that bill? Or did you never receive a bill for anything beyond the $1k that you paid.

At what point can a debt collection agency put a claim on my credit report?

At any point that it's past-due.

I cannot imagine that any collection agency can just ruin someone's credit but claiming they are owed money without having to prove it through some sort of legal process?

Making a report to a credit reporting agency does not require any "sort of legal process." You may wish to familiarize yourself with the federal Fair Credit Reporting Act (which you can read about with a simple Google search).

I suggest you keep an eye on your credit report.

 

[mangosalsa]

WOW I cannot believe all the replies I received from all of you. Thank you sincerely.....

Here are my replies to your questions, and THANK YOU AGAIN EVERYONE

Have you contacted the vet for a copy of the bill? Why do you believe you don't owe the money? Other than your grief at losing your dog, why do you believe that they are responsible for the death of your 11-year old dog that had an underlying health condition?
Your best bet is to negotiate (in good faith) with the vet. From their perspective, you've simply ignore them up until this point.

I do owe some of the bill but they nickle and dime the heck out of everyone. Regarding my dogs death, I am contemplating litigation based on what I believe is malpractice for not performing certain tests that would have possibly changed the outcome. HOWEVER regarding this issue, I will say it is unrelated so I will keep it simple with this debt request.

Regarding negotiation, that is EXACTLY what I am wanting to do but I am not sure how to go about that BEFORE my credit is affected by this. So what I am wondering is:

1. Do I negotiate the debt with the debt collectors at this point?
2. How would you suggest negotiating? Literally calling them and saying I can't afford this and asking for a lower amount?
3. I sent a certified letter to the debt collector which requested verification of the debt. The reason I really did this is to give me time because I thought that it allowed another 30 days for me to await their reply before they would be able to post this to my credit?

 

[mangosalsa]

The collector violates the Federal Fair Debt Collection Practices Act (FDCPA) if it continues collection efforts after you have requested in writing that it verify the debt and it has not yet provided that verification. The verification required to satisfy the statute, however, is minimal.

Okay but since I requested in writing to them that they verify the debt, does that mean they have to wait to post it on my credit report until they send me "verification" and a certain number of days pass after that? I am wondering specifically about the TIMEFRAME that must happen now BEFORE they can report it to my credit...

 

[mangosalsa]

Did someone at the hospital actually acknowledge responsibility? Or are you just speculating? Are you saying that you received a bill for the balance and that no one ever contacted you after you received that bill? Or did you never receive a bill for anything beyond the $1k that you paid.

No one at the hospital acknowledge responsibility, but I did find it odd that no attempt was made by them to collect the debt and I thought initially it might be due to their responsibility but maybe it is just their policy when an animal dies to not overload the family with payment requests.

Regarding them reporting the debt to my credit report, I want to avoid that but if it happens would the debt be REMOVED after negotiating payment? If it is removable, will there still be any "hit" taken going forward or would it be as if the debt never happened?

 

[quincy]

WOW I cannot believe all the replies I received from all of you. Thank you sincerely.....

Here are my replies to your questions, and THANK YOU AGAIN EVERYONE


I do owe some of the bill but they nickle and dime the heck out of everyone. Regarding my dogs death, I am contemplating litigation based on what I believe is malpractice for not performing certain tests that would have possibly changed the outcome. HOWEVER regarding this issue, I will say it is unrelated so I will keep it simple with this debt request.

Regarding negotiation, that is EXACTLY what I am wanting to do but I am not sure how to go about that BEFORE my credit is affected by this. So what I am wondering is:

1. Do I negotiate the debt with the debt collectors at this point?
2. How would you suggest negotiating? Literally calling them and saying I can't afford this and asking for a lower amount?
3. I sent a certified letter to the debt collector which requested verification of the debt. The reason I really did this is to give me time because I thought that it allowed another 30 days for me to await their reply before they would be able to post this to my credit?

TigerD” is an attorney from Missouri who was also a debt collector for many years and he wrote the following tips on negotiating with a debt collector:
https://forum.freeadvice.com/threads/how-to-negotiate-a-settlement.428587/

Some entities will turn over any past due bills to a collection agency rather than attempt collecting on their own. You will want a copy of the final billing from the veterinarian and verification that the remaining amount due on the bill was turned over to the agency now trying to collect from you.

I am sorry about the death of your dog. It is hard to lose a longtime pet.

Good luck.

 

[Zigner]

No one at the hospital acknowledge responsibility, but I did find it odd that no attempt was made by them to collect the debt and I thought initially it might be due to their responsibility but maybe it is just their policy when an animal dies to not overload the family with payment requests.

Regarding them reporting the debt to my credit report, I want to avoid that but if it happens would the debt be REMOVED after negotiating payment? If it is removable, will there still be any "hit" taken going forward or would it be as if the debt never happened?

Honestly, it sounds like you owe the money. The most sure-fire way to avoid it being reported on your credit report is to pay it before it is reported.

 

[mangosalsa]

Here is a screenshot of the letter I sent them on 6/1/20:

 

[quincy]

Here is a screenshot of the letter I sent them on 6/1/20:

Well ... what you wrote in your letter can get you sued for defamation.

Michigan defamation law:
http://legislature.mi.gov/doc.aspx?mcl-600-2911

 

[Zigner]

Furthermore, Items 2, 3, and 4 aren't required of the collection agency. In fact, even 1 is questionable.

 

[quincy]

I think you are past the point of self-help, mangasalsa. You probably should speak to an attorney in your area of Michigan. Or pay the amount outstanding on the veterinarian bill now and consult with an attorney about the possible malpractice and potential defamation later.

 

[zddoodah]

Regarding them reporting the debt to my credit report, I want to avoid that but if it happens would the debt be REMOVED after negotiating payment? If it is removable, will there still be any "hit" taken going forward or would it be as if the debt never happened?

I'm sure a negotiated settlement after a reporting could include removal of the reporting. I can't predict how that might impact your credit. Obviously, it would be better to negotiate a settlement before any reporting is made.

Furthermore, Items 2, 3, and 4 aren't required of the collection agency. In fact, even 1 is questionable.

Nothing wrong with requesting them, though, and I'd say that one would be foolish to negotiate with, pay or even deal with a collection agency without evidence of either an assignment of the debt from the original creditor to the agency or that the agency has the right to collect on behalf of the original creditor.