Legal Question in Credit and Debt Law in California
I went to an orthodontist over 3 years ago for braces. At the time I worked for a company that offered dental insurance so the orthontist office called the insurance company that I was in fact insured and they would cover $1000 of the $2500+ cost. I paid about $1500+ up front IN FULL and I was told the additional $1000 would be covered by the insurance company. A few months after I had completely finished my orthodontic work I moved and got a new job.
3 years later I get a phone call from a collections agency claiming that I owed $450. They say the insurance company makes payments to the orthodontist and since I did not stay with the company until all the payments were made that I am responsible for the balance owed. I talked to the orthodontist office and the insurance company and they both made the same claim. The collection agency keeps calling and hassling me and I'm not sure what to do. I paid everything I was responsible for up front so what can I do about this? Thank you so much for your help!
1 Answer from Attorneys
Did you sign an agreement with the orthodontist when you started your treatment? If so, chances are the orthodontist's agreement has a clause in it that states that in the event that the insurance fails to pay their portion, that you agree to pay the orthodontist whatever the insurance fails to pay. The statute of limitations on an agreement in writing or if they sent you written statements/bills and you paid on the agreement/bills is four years from the last payment or the last service rendered. You really need to have an attorney look at the statute of limitations issue.
Look at the agreement. Ask the orthodontist for the written agreement that you signed if you do not have it. An attorney will want to review the agreement.
If there was no written agreement, and the debt is over four years old from the time that the last service was rendered or the last time a payment was made, chances are the only thing the orthodontist can do is make collection calls because they cannot bring a lawsuit because they are outside the statute of limitations. If they never sent you any bills in writing because you paid your portion up front, then arguably, the statute of limitations for you may be two years. I would not count on the two-year statute; most orthodontists are smart enough to have you sign a contract before services are rendered.
If they are outside statute of limitations, you can write the collection company and the orthodontist a cease and desist letter. If they do sue you and the debt is outside the statute of limitations, you would be entitled to have that lawsuit dismissed.
If the orthodontist and/or a collections company calls you after you demand in writing that they cease and desist all further telephone contact, keeping a copy of that writing for your records, then you have a lawsuit against them for their failures to abide by the Federal Fair Debt Collections Practices Act and/or California's Rosenthal Act. Please look at my website at http://www.aimeemorris.com/ for more Debt Collections advice.
Please let me know if you need any help.
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