Can debt collection agencies refuse to set up a payment plan with you if you are trying to settle a
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My sister became seriously ill and had to have emergency surgery. We did not know it but she was grossly underinsured and is now looking at $44,000.00 in outstanding medical bills. The debt has been given to a collection agency has refused to agree to a payment plan with her saying that she needs to borrow from her bank. My sister makes about $23,000 a year and does not qualify for a loan that large. I told her to just start sending them payments and keeping receipts or her cancelled checks and calling monthly to make sure they received the payments and noting who she is speaking with, that way if they take her to court she can produce something showing that she is making an effort Is there anything else she can do? We definatley don't want to stiff the hospital but we were shocked when we found out the type of policy her employer had provided only covered room and board and not the actual care.
Can debt collection agencies refuse to set up a payment plan with you if you are trying to settle a debt?I've been a bill collector for the past two years, most of that time spent in an agency that collects for hospitals.
To answer your question:
YES, A collection agency can refuse a payment plan. They can also take legal action (if the original creditor allows it) against you EVEN IF YOU ARE MAKING REGULAR PAYMENTS. When an account reaches the collection stage, the balance is due in full. :(
In most circumstances, the hospital (like any other creditor) has offered their "idea" of a payment arrangement prior to her account reaching collections; Several letters and phone calls should have been made to the patient asking for some sort of repayment. If it has gone to collections, there is NO obligation the collector OR the agency to accept a minimal payment plan.
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