Need help clarifying what CA's can and cannot do
I have seen all the professional advice the moderators of this forum have been giving individuals who have problems with collection agencies, and would like to thank all of you in advance to taking a look at my situation. Perhaps someone else out there has ecountered a similar problem and can look to this topic for advice.
Here's my situaiton: I am a resident of Los Angeles, CA. I recently injured my foot and had to have some scary orthopedic surgery back in the beginning of June, 2005. It was at a county hospital because I do not have medical insurance. Some weeks after the surgery, I met with somebody in the Business Office at the County Hospital to discuss payment fo $11,724. Once in the meeting, the representative told me, after reviewing my checking account and assest (little to none), that I only have to pay $2,264. And here's the kicker: she said "since this is a county hospital and we understand you do not have much money, cannot work, and are receiving very modest compensation through California Disability Iinsurance payments (SDI), you do not have to pay this all now. You can make monthly payments of whatever amount you can do, and there is NO timeframe to pay, and NO interest."
I was relieved. I was ready to make my first payment soon. Until I received a letter from a collection agency named USCB, Inc in L.A. who said I must start paying them. I explained to them that I worked out a plan with the hospital. I do not have to pay them (The Cashier's Office at the hospital, whom I made my first payment through, told me to say this!). They said, "no you MUST pay us at least $187 a month, or we will turn this over to a County Collections Agency", which I guess is the serious stuff. Bad credit, etc.
I am an extremely responsible person when it comes to finances. I never run from a debt. However, I have not worked in 3 months due to this injury. Thus, I am close to broke.
I guess my questions is, do i really have to pay this CA when even the hospital tells me to keep paying THEM and to IGNORE the CA? Nobody can answer me as to who turned this debt over to the CA. I mean, it was literally not even two weeks later. It's not like I was overdue or defaulted on payments.
I am very nervous and am not even sure what to ask here. I do not want negative credit. How do i handle this? Also, please keep in mind that they are not willling to negotiate payment amounts and threaten to turn me over to the County Collections if I do not comply.
HI rkulchar Welcome to the forums. I read your post thoroughl
HI rkulchar
Welcome to the forums. I read your post thoroughly and feel that your account has been falsely represented by the collection agency.
You must be having some copies of your payment receipts that you are doing with your hospital. I advise you to keep it in safe place as these are the proof which shows that you are into an agreement with the hospital and you have never defaulted in your payments.
At this time, it is advised if you can pull your latest credit report from the three credit bureaus. You will get confirmed of your latest credit standing through your report. Most likely, this collection account is not supposed to appear in your credit report. In that case, you do not have to worry about the collection agency.
Now, as the collection agencies are usually involved in purchasing debts and working for the creditors when the accounts go in defaults, it is not possible in your case as you have not given the opportunity to the hospital to show you in defaults. (Your payment receipts will prove that part)
If all goes well, then you do not have to worry about the collection agency at all. Ask them to validate the said debt if they are legitimate. Also, you can send a letter to them to stop all the communication with you otherwise it will be a violation of the fdcpa law and you will take legal action against them.
Rkulchar, do not get nervous as the collection agents are desperate to create stress in the minds of the consumers so that they start paying them hurriedly. If you didn't ask us in the forums, maybe you would have been fearful and impatient about it and they would have succeeded in recovering the money from you.
I am happy that you exercise your consumer rights and are also responsible towards your decisions relating to finance. So, assuming that the debt collectors have got the wrong person who cannot be intimidated, I wish you a speedy recovery.
Regards
Roxette
Thank you so much for your advice. One more question: Should I w
Thank you so much for your advice. One more question: Should I wait a certain period of time before purchasing all three of my credit reports so I can make sure this discrepancy has not negatively affected my credit? For instance, this has all happened very recently. I don't want to get the reports and have nothing on them only because they haven't reported it yet. Would it be to my benefit to wait a month or two, so that I can make sure this has or has not showed up?
Also, if it HAS showed up, and is incorrect, who do I contact to have it stricken from my credit report? The Credit Bureau where I got the report? And how do I prove it, with documentation, etc?
Thanks again,
Richie
Hi Richie Welcome back. Yes, since this has happened very
Hi Richie
Welcome back.
Yes, since this has happened very recently, you can wait for a while. Normally, the credit bureaus update the individual files within 30 to 60 days.
After comparing the credit report of the three bureaus, whichever bureau has reported it incorrectly, you can file a dispute with them.
You can approach them with all your documents proving your dispute so that they can conduct a thorough investigation with the information providers and if any entry is found incorrect, they will update your credit report and notify you within 30 days.
Do let me the result of it. Enjoy your stay in the forums. You will be updated with all the latest information on debt consolidation and related issues.
Regards
Roxette