Legal Question in Credit and Debt Law in Alabama
My Father's Medical Bill
My father spent a couple days in Hospital last year. He has no insurance, so he was billed about $10,000. He got in touch with the hospital and agreed with a payment plan. He payed his monthly payments for the first 3 months. During this time, the hospital sent him a letter offering him to reduce his bills in half if he pays in full. But he didn't have the money and liked this payment plan idea so kept on paying. A couple of months later, he was all of a sudden contacted by a collection agency to pay. After a couple of calls, the agency agreed if he pays half they would set the rest to a payment plan, so he agreed. Collection Agency contacted him again in 2 weeks that he will have to pay the rest even though they agreeed.
First of all, can the hospital submitt it to a collection agency even when both agreeed on a payment plan and he made his payments? They didn't even give him a warning. And second, can the collection agency go back on their word and try to collect the rest? I wanted to know if we have a lawsuit on our hands. Any explanation would be helpful.
1 Answer from Attorneys
Re: My Father's Medical Bill
Well, first a couple of questions need answering. One, when your father negotiated with the collectors and agreed to pay half and put the rest on payment plan, did he pay the half up front before they reneged on the agreement? And second, was anything put in writing when your father first negotiated the payment plan with the hospital? There is a possibility, depending on these answers and some other details, that your father may have some sort of claim. You need to contact an attorney directly and get all the details to that person so they can make an accurate assessment.
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