Legal Question in Credit and Debt Law in Indiana
I obtained medical services at a county owned hospital. They sent me a bill 8 months later for a little over $1000. I sent them a letter stating that I would pay them $50 per month until it was paid in full. Which I have done faithfully every month, sometimes twice a month since I got the bill. If they did not accept these arrangements, then they should not have cashed my checks. Can a county owned hospital legally send the debt to a collection agency if I have been paying for it? Which is what has happened, they are also trying to charge me "Interest" at an unnamed rate. I was under the impression that as long as I was paying on a debt, it could not be sent to a collection agency. Please help. If I'm correct, I need a specific law quote to return to them to get this process haulted, and continue to pay off my bill. Thank you.
1 Answer from Attorneys
Unfortunately, you are not correct. They have accepted the payments because you owe them money. There was never an agreement under which they agreed to take no action as long as you sent them $50/month.
Their agreement to provide medical services (or whatever they call their's), undoubted called for interest on unpaid accounts.
So yes they can take your money, still send it to a collection agency, and charge you interest.
The idea that they cannot take action if you are paying them something each money is a myth. Unless you have an agreement with them, and it better be in writing, then they can still use other methods of collections.
Sorry I cannot be of more help. It is one reason why so many people with medical debts end up filing bankruptcy.
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