Can I be turned over to a collection agency while making regular payments to a business?

Question

I was making payments every other week to a local hospital and today I received a letter from a collection agency in reference to the hospital account. I was under the impression that in GA if you were making regular payments you could not be turned over to a collection agency. Also, I was told that the hospital's policy is if the medical bill is not paid off within one year, the account is turned over to a collection agency. Does this sound right?

Answer 1

  Remember, they are not to threaten you in anyway shape of form.  Do not call or talk to anyone in a COLLECTION AGENCY.. They are phone savy, and will bind you to a promisory note which you will default anyway ..  Call the hospital directly. and ask for the billing department.  Don't fall for the COLLECTION AGENCY tactics.  search the internet for help.  never go through DEBIT agencies also... Search the internet for additional help on this. God Bless.. Prayer is alsways good too....

Answer 2

Call the hospital and ask them about their policy.  If that is their policy, that could be the reason you have been contacted by a collection agency.  I imagine hospitals have a lot of clients who pay on the bill, and perhaps that is overwhelming.  Anyway, contact the collection agency, and if the amount is not what you feel it should be, you have 30 days to respond from the date of their letter.  You can dispute the charges and that means there will be a time of discovery.  They will have to send you every detail about the bill (who it is from, all your previous payments, etc.).  If they do not respond promptly to you, or if there is a discrepancy, your payments to them will not be valid.  

--- Toni D.  

Answer 3

the hospitals give you 90 days to pay, or make other arrangements; bank financing your account is one way to avoid  going to collection; you do not have to go to a bank to finance your account, the hospital  have a contract with a local bank , so they will do it for you; but if you're in collection you need to call the hospital and tell them you want to go bank finance and you want to pay a low payment; you can go as low as $15.00 a month.

lets say you owe $300.00 you can pay $100.00 per month without making any arrangements; but if the hospital have not agree to take your money, they will take the money; but you will go to collection after 90 days, they will  keep your account as far as   120  days, if you're lucky.

Insurance representative for a hospital.

Answer 4

I am under the impression that if a business cashes the checks you send them they are in essence agreeing to your "payment plan."  That said, I had a debt sent to collection once.  It's not like they could charge interest or anything.  I just made them monthly payments.  I'm sure it hurt my credit rating a little bit, but I just kept paying and got it taken care of.

Answer 5

You were paying your bill off no matter how much money or how long it was taking you. You need to call the Hospital and see if you can work it out with them and have them take it off your credit report. If you have the deal in writing and proof you've paying them then I would complain to the Attorney General or Better business beaurou.

Answer 6

That sounds about right.  So, just make sure that you have received credit for all of the money you have paid and continue paying the collection agency.  The collection agency will be happy that you are making payments and should not bother you too much.

Answer 7

I live in Ga also and as long as you are making monthly payments to them they can do nothing. If a collection agency does damage your credit in any way you have legal rights to sue. Just keep good records and document everyone you speak to about this their name and what was said. I also agree with the people above me dispute all their charges and try and get a reduction in your bill

Good Luck

Answer 8

You can just simply make payments the collection agency then. But normally so long as you are making the agreed payments you shouldn't be turned over to collections.

Answer 9

First need to know:

1) Do you have anything in writing outlining a payment plan with them?

2) Do you have any signed contract outlining their payment policy?  Note: A sign in the lobby does not imply terms of a contract.

3) How long have you been making payments?  You say ever two weeks, but for how long?

If there is nothing in writing outlining a payment plan, and they have been accepting payments for a couple of months, there is an "implied contract" between you and the hospital.   In Georgia, an Implied Contract is inferred from the conduct of the parties and is enforced by the law on the ground of justice.

An Implied Contract is one not created or evidenced by the exclusive agreement of the parties, but inferred by the law, as a matter of reason and justice from their acts or conduct. The circumstances surrounding the transaction make it reasonable, or even a necessary assumption, that a contract existed between them by tacit understanding.

Therefore, by repeatedly accepting your payment on this debt, there is an "implied contract" between you to continue such payments until the debt is paid.

OK, so here is the problem.  The collection agency now has your debt.  Yes, they are allowed to "purchase" your debt, or act as the agent for the hospital to collect it.  But legally you are not in default of this debt, and you are not late or behind in payments.  

If the collection agency puts this debt as a derogatory item on your credit report, they are doing so illegally.  What you need to do is a) dispute this with the credit bureau, and b) send a "demand to validate" letter to the collection agency informing them that you are not late on any payments, and are not in default of any contract.  Order them to delete this item from your report or you will sue them for willful noncompliance with the FCRA laws and violations of the FDCA.  (You don't understand these terms, but trust me...it will send shivers up their spine!).

Also, send the collection agency IMMEDIATELY a dispute on this.  You must do this within 30 days of receipt of their notification that they are collecting this debt.

Keep your payment records of this debt, you may need them if this ends up in court.

You have a good case if this makes it that far.

Answer 10

If you make  regular payment I don't think so.

Answer 11

Hospital bills are due when services are rendered.  If you have not made a large enough dent in the balance w/in the first 180 days, they will likely charge the account off and turn it over for collections.  The hospital will still own the debt and if a CA sends you a dunning letter, send a debt validation letter in response w/in 30 days of receipt.  Continue making your payments to the hospital but periodically request statements to ensure you are receiving proper credit.