Almost one year ago, I hit a parked vehicle, found an owner, and gave my insurance policy number(I insured in Progressive) and contact details to him. My policy was active, and I’m still using Progressive. I did not fill the claim promptly, and after one month after the incident, I received a notification from Progressive about a claim, and finally decided that I don’t need to open a claim as it was already opened for me. Then, after one month the claim was closed with 0$ payment to the suffered side. I did not receive any communication on that claim from Progressive.
Today I received a call to my cellular phone from AFNI collection agency. They said that the StateFarm sent a subrogation claim to them (see attached, I retouched the contact details) as I did not have insurance at that time and they sent this letter to me by mail. I said that I received nothing, and asked to send the letter to my email. According to the scan, I owe 1758 $ to the collection agency. Also, there is a form attached to this email to provide the insurance details at the time of loss to AFNI. I filled that form and emailed it back.
In the letter, the name of the policyholder does not match with the actual name of the suffered party from the Progressive claim.
When I contacted Progressive, they initially said that the claim was filled for 0$ and connected me to the claim adjuster, who processed the claim. She was out of office, so I left a voicemail, and she replied to me with another voicemail, that I “Failed to not cooperate with Progressive on this case despite numerous contact attempts, so the case is denied, and responsibility rests on me.” But actually, I did not receive any calls, emails, or letters from them. Progressive tracks all correspondence in the personal profile on their website, and when I double checked it, there is no correspondence regarding that claim.
So my question is – should I keep contacting Progressive to settle the claim with them, but it seems they are looking for every opportunity to deny the claim, and to say that it is my fault?
Which proper steps in communication with AFNI collection agency, should I request a debt verification from them?
What are the consequences if I will not pay the debt to the collection agency (I am residing in Iowa?) besides the bad credit and collection marks in my credit history? How likely that they will sue me for roughly 1700$?
I’m an international student and don’t have any property besides my old cheap vehicle, and no stable income, besides 1200$/month assistantship at my university.
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