Court Date for Medical Debt from 2014

[Zigner]

Gotcha. What's reaffirmation of debt?

Reaffirmation (more accurately, "acknowledgement") is some action that restarts the clock. Making a payment is one way for a debt to be acknowledged. A written agreement is another way (in most states). In most states, a verbal agreement alone isn't enough to restart the clock.

Please note that I am not an attorney. You would be wise to at least have a chat with an attorney if you believe that you may have (or want to explore) a defense based upon the statute of limitations.

 

[Moofies]

Reaffirmation (more accurately, "acknowledgement") is some action that restarts the clock. Making a payment is one way for a debt to be acknowledged. A written agreement is another way (in most states). In most states, a verbal agreement alone isn't enough to restart the clock.

Please note that I am not an attorney. You would be wise to at least have a chat with an attorney if you believe that you may have (or want to explore) a defense based upon the statute of limitations.

I know we never acknowledged it in any form whatsoever. That's a flat out lie on their end if it's indicating we acknowledged it in any way, shape, or form. We never gave anyone or agreed to give anyone any money. However, that being said, unless that fact means anything in an defense argument or something, the fact is they still began the court stuff just before.

(I hear you that you're not an attorney but I appreciate the information none the less.)

 

[quincy]

If the lawsuit was filed late (outside the 6 year period of time), the statute of limitations can be used as a defense to bar collection action and dismiss the suit.

You will want to see if that can be used. On first read of your thread it did not seem applicable because the injury to your daughter was in 2014 and the suit filed in 2020. Have your attorney check out years, months and days to be sure.

 

[Moofies]

I'm currently crunching the numbers on the original bills and the statement/breakdown from collections. I still can't get ahold of NJP/C.L.E.A.R.

At this point I'm preparing my own finances to pay it, but I have a couple of questions regarding the different interest rates and breakdowns. I'm preparing an offer for them on Monday. Some places they charge 12% and others 9%. I thought it was only supposed to be 9%, but I'm not sure if that applies to everything or only certain years, etc.

Should I create a new thread for that since it's related to billing, or continue here?

 

[quincy]

I'm currently crunching the numbers on the original bills and the statement/breakdown from collections. I still can't get ahold of NJP/C.L.E.A.R.

At this point I'm preparing my own finances to pay it, but I have a couple of questions regarding the different interest rates and breakdowns. I'm preparing an offer for them on Monday. Some places they charge 12% and others 9%. I thought it was only supposed to be 9%, but I'm not sure if that applies to everything or only certain years, etc.

Should I create a new thread for that since it's related to billing, or continue here?

In Washington, there is a limit on how much interest can be charged on a debt. That limit is 9%.

It is preferred that all related questions are kept to a single thread. Thanks.

 

[Moofies]

In Washington, there is a limit on how much interest can be charged on a debt. That limit is 9%.

It is preferred that all related questions are kept to a single thread. Thanks.

No problem, and thanks!

 

[Taxing Matters]

In Washington, there is a limit on how much interest can be charged on a debt. That limit is 9%.

That conflicts with the information provided by the Washington Department of Financial Institutions, which states that currently the maximum rate of interest that may be charged on loans is 12%. See the Department's explanation of Washington usury law.

 

[quincy]

That conflicts with the information provided by the Washington Department of Financial Institutions, which states that currently the maximum rate of interest that may be charged on loans is 12%. See the Department's explanation of Washington usury law.

The 9% limit is for medical debt.

See (4)(a) and 4(b) of 19.52.020:
https://app.leg.wa.gov/rcw/default.aspx?cite=19.52.020

 

[Taxing Matters]

The 9% limit is for medical debt.

Ok, but Moofies is apparently asking about the rate in regards to taking out a loan to pay this debt. That personal loan would not be subject to the limit on medical debts.

 

[quincy]

I'm currently crunching the numbers on the original bills and the statement/breakdown from collections. I still can't get ahold of NJP/C.L.E.A.R.

At this point I'm preparing my own finances to pay it, but I have a couple of questions regarding the different interest rates and breakdowns. I'm preparing an offer for them on Monday. Some places they charge 12% and others 9%. I thought it was only supposed to be 9%, but I'm not sure if that applies to everything or only certain years, etc.

Should I create a new thread for that since it's related to billing, or continue here?

I think Moofies is asking about the interest on the medical debt.

 

[Taxing Matters]

I think Moofies is asking about the interest on the medical debt.

If she is asking about that, then the reason for her confusion may be that the limit on medical debt is fairly new, only taking effect in July 2019. So the debt could have had interest rates higher than the 9% before July 2019, but not after.

 

[quincy]

If she is asking about that, then the reason for her confusion may be that the limit on medical debt is fairly new, only taking effect in July 2019. So the debt could have had interest rates higher than the 9% before July 2019, but not after.

Right. It will take some figuring.

There are new requirements for debt collectors on Charity Care, as well, which is why I asked Moofies about any notice provided by the collection agency prior to the filing of the lawsuit in 2020, and why I noted that collection activity must cease during the time charity care is being sought.

 

[Moofies]

I think Moofies is asking about the interest on the medical debt.

Correct. I'm triple checking what I owe the collection agency for the two medical debts.

 

[Moofies]

Right. It will take some figuring.

There are new requirements for debt collectors on Charity Care, as well, which is why I asked Moofies about any notice provided by the collection agency prior to the filing of the lawsuit in 2020, and why I noted that collection activity must cease during the time charity care is being sought.

I've never sought financial assistance any way for these two bills. I may have paid a copay on the date of the visits. (I likely did.)

When I spoke with the collection agent on Tuesday, she mentioned something about it, but I have no paperwork that mentions that anyone attempted to see if I qualify. That being said, I'm relying less on that right now, apart from possibly integrating it into the offer I'm preparing for Monday. (Like, if I'm able to determine on my own if that's a real issue I could argue as a strong point, or potential leverage for why they should consider my offer.)

Worse comes to worse, I am at this point planning on paying it in full for what they're asking, however, I feel it's worth checking the numbers either way since they could potentially be a more solid defense if I have to present in court. Also, you know, not wanting to pay more than I legally have to.

I hope that makes sense.

But yes, @quincy is right, I'm currently focusing on the medical charges and those charges added by the collection agency. (I did tell the collector on Tuesday I have no choice but the pursue Charity Care, but she mentioned nothing about delaying the court date, giving us any extra time for that, and stated we have virtually no chance.)

 

[Moofies]

Update: The good news is we were approved our 401k withdrawl. I just checked my husband's account and the money is already there. So at this point I am actually able to pay/negotiate on Monday. (Debt collector said I have until the 4th if I should choose to pay and avoid court on the 8th.)