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mariej1256 · Jun 20, 2008, 05:48 AM

I was left with a bill close to $2000 in 2006 from testing done at a hospital that my insurance did not cover. I called the billing dept. and explained all I could pay on both tests (seperate bills) was a total of $50/month. I was out of work for almost 2 years due to health issues, but faithfully have paid the $50 every month since then. It has been over 2 years now and I still owe close to $700, but continue to honor my monthly payments.

Now, I get a call from the hospital saying that if I don't pay more or in full... it will be sent to collections and put on my credit report. I explained that I cannot afford more than that at this time, and have no ability to pay it off and how could they send me to collections when I pay every month? She said they can... and ended the call. Now the collection agency calls regularly and leaves messages... and sent a letter/bill. I responded with a letter back explaining my agreement with the hospital (I have nothing in writing, only a phone conversation) in 2006 and not hearing from anyone until now... and that I have and will continue to pay monthly amounts; if I can pay more I will; if I can pay it off, I will.

Question is... can they put me into collections for a debt that I am paying and will continue to pay? I would appreciate any help you can offer.
Thank you.
Marie

George_1950 · Jun 20, 2008, 06:20 AM

The hospital has a period within which it must collect its money or lose its right to collect, called the statute of limitations. You said you have an "agreement", described as "I responded with a letter back explaining my agreement with the hospital (I have nothing in writing, only a phone conversation)", which may be no agreement at all if it was not approved by an officer of the hospital. If there is no dispute about the amount you have paid, keep paying it; keep in contact with the collection agency. They are not likely to sue if you are making timely payments. Get a copy of your credit report, also, and see whether the debt is showing already.

ScottGem · Jun 20, 2008, 06:39 AM

First the statute of limitations doesn't apply here since you have been making regular payments. On the other hand, the hospital has no obligation to accept those payments unless they agreed to in writing. So they are within their rights to send the account for collections.

However, the collectors need to follow some rules. They cannot harass you with calls if you tell them to contact you only via mail. I would continue to make payments. However, you say your balance is about $700. Is it by your reckoning or the hospitals? Its certainly possible that $50/mth doesn't pay the interest and the balance has gone up.

The next step on the creditor's side is to file suit against you. You will answer this suit with an Intent to Defend. You will go to court and tell the judge that you had a verbal agreement to pay $50/mth and that you have faithfully fulfilled your end. You then present proof of your payments. In all likelihood the judge will throw out the suit and order them to honeo the payment schedule.

JudyKayTee · Jun 20, 2008, 06:42 AM

Originally Posted by George_1950

The hospital has a period of time within which it must collect its money or lose its right to collect, called the statute of limitations. You said you have an "agreement", described as "I responded with a letter back explaining my agreement with the hospital (I have nothing in writing, only a phone conversation)", which may be no agreement at all if it was not approved by an officer of the hospital. If there is no dispute about the amount you have paid, keep paying it; keep in contact with the collection agency. They are not likely to sue if you are making timely payments. Get a copy of your credit report, also, and see whether the debt is showing already.

The statute runs from the last activity on the account - the OP and the hospital have continued to extend the statute on a month basis by making/accepting the payments.

No statute problem.

excon · Jun 20, 2008, 06:52 AM

Hello m:

Read the other post about a lady who needs help with her medical bills too. You might find some charity or church who will pay it off for you.

excon

mariej1256 · Jun 20, 2008, 07:06 AM

Thank you for all your quick responses to my question earlier today. I have been going through my files and found a statement from the hospital that says:

"This letter will confirm our conversation, that you are unable to pay the account(s) listed on the back of this letter in full. However, we have agreed to accept your partial payment of 25.00, which is due on the 25th dday of each month, starting 04/25/06. All payments must be received by the office on or before the due date. Due to the nominal amount of your payment in relation to the total balance due, we reserve the right to review your financial ability to make increased monthly payments. If you are unable to make this payment as agreed, please call our office imimediately. You may make additional payments of pay the total balance due at any time."

Will this help my case? And, do I need to send a copy of this to the collection agency?

Thank you so much for all your help!
Marie

ScottGem · Jun 20, 2008, 07:14 AM

I've merged the two threrads. Please don't start a new thread for a follow-up, Use the Answer this Question, Quiock Reply or Quote user options.

That letter seals the deal for you. Send a copy of that letter to both the hospital billing department and the collection agency. Offer to provide proof that your income has not increased since the payment plan was agreed to.

excon · Jun 20, 2008, 07:19 AM

Hello again, Marie:

Once the account goes to a collection agency, those scumbags won't make a deal with you. They're going to want to be paid, and like right now. Plus, they're going to add all sorts of administrative costs...

In my view, the letter you quoted above is not a contract, wherein they MUST accept your $25 payment. If it WAS a contract, you could prevent the hospital from sending you to collections in the first place...

Nope, I think you need to get it paid, somehow.

excon

ScottGem · Jun 20, 2008, 07:24 AM

I disagree with excon here.

"we have agreed to accept your partial payment of 25.00,"

This represents a contract offer which you accepted by making payments. Under the terms of the contract (the letter), then can ask you to submit financial documents to review whether you can afford to pay more. If those documents do not show an increase in income, then they can't change the offer.

George_1950 · Jun 20, 2008, 07:29 AM

Originally Posted by mariej1256

Thank you for all your quick responses to my question earlier today. I have been going through my files and found a statement from the hospital that says:

"This letter will confirm our conversation....we have agreed to accept your partial payment of 25.00, which is due on the 25th day of each month, starting 04/25/06...You may make additional payments of pay the total balance due at any time."

Will this help my case? And, do I need to send a copy of this to the collection agency?

Thank you so much for all your help!
Marie

I believe this is enough for you to have the dogs called off. Why not write a letter to the hospital administrator and the board; thank them for the care and help you have received, and ask why, with this agreement in place, the business office referred your account for collection.

excon · Jun 20, 2008, 07:39 AM

Hello again, Marie:

I don't know if it will be held to be a contract or not, should it ever get to court. It sure MIGHT be. Besides, Scott knows his stuff.

However, as I said before, if it IS a contract, you can prevent the hospital from sending you to collections in the first place. You certainly haven't violated its terms... Therefore, I'd act as though it IS a contract.

I'd write them a letter. Include a copy of your "contract". Tell them that they may NOT change the details of your agreement, and they must continue accepting your payments. Tell them further, that if they DO send you to collections, and it DAMAGES your credit rating (which it will), that you'll SUE them. Send your letter certified, return receipt requested.

excon

mariej1256 · Jun 20, 2008, 08:06 AM

Originally Posted by ScottGem

I disagree with excon here.

"we have agreed to accept your partial payment of 25.00,"

This represents a contract offer which you accepted by making payments. under the terms of the contract (the letter), then can ask you to submit financial documents to review whether you can afford to pay more. If those documents do not show an increase in income, then they can't change the offer.

Thank you Scott for your help... also for instructing me how to answer your answers! Everyone's answers have helped immensely... I have shot off letters with copies enclosed of the hospitals "agreement/statement" to the collection agency and the hospital as well! Will let you know the results! :D

ScottGem · Jun 20, 2008, 08:12 AM

Good luck

JudyKayTee · Jun 20, 2008, 09:10 AM

Originally Posted by mariej1256

Thank you for all your quick responses to my question earlier today. I have been going through my files and found a statement from the hospital that says:

"This letter will confirm our conversation, that you are unable to pay the account(s) listed on the back of this letter in full. However, we have agreed to accept your partial payment of 25.00, which is due on the 25th dday of each month, starting 04/25/06. All payments must be received by the office on or before the due date. Due to the nominal amount of your payment in relation to the total balance due, we reserve the right to review your financial ability to make increased monthly payments. If you are unable to make this payment as agreed, please call our office imimediately. You may make additional payments of pay the total balance due at any time."

Will this help my case? And, do I need to send a copy of this to the collection agency?

Thank you so much for all your help!
Marie

I think the "we reserve the right" language over 2 years ago gives them the right to review your ability to pay (using their own resources, not requiring your cooperation or consent) and rescind this agreement based on what they determine. At $25/month without interest this will take over 6-1/2 years to pay off and perhaps their accountants have decided not to wait. Have you had any increases in income since 4/25/06? Unfortunately the cost of living "usually" does not figure into these calculations - you get a raise but the cost of living goes up.

I think the vague language gives them a loophole.

Do I think you have a defense? Certainly. Do I think it will work? Depends on what the hospital has determined (or thinks it's determined) concerning your ability to pay.

JudyKayTee · Jun 20, 2008, 09:35 AM

[QUOTE=Comments on this post
excon agrees: It's just a bit too unilateral to be a contract, in my view.]

It is certainly written to favor the hospital - by the hospital. That's the problem with agreements of this sort.