Legal Question in Credit and Debt Law in Texas
Collecting debt on a ''zero'' balance
Our daughter received treatment at the ER January of 2001. Our insurance paid the bill in full. In June of 2003, after doing a credit report, we find $105 of this bill has been sent to collections. After making a few phone calls, we discovered that the insurance requested a $105 refund from the hospital, which they granted them in May of 2002. Then the hospital turned arouned and billed us the $105, but claimed they could not find us at all(we did move), and immediately sent the bill to collections in June of 2002, almost two years after the same hospital sent us a bill, which we still have, that stated we had a ''zero'' balance for that same ER visit. The collection agency offered a 25% discount of what we owed. Should we pay that or pay nothing? What are our rights?
2 Answers from Attorneys
Re: Collecting debt on a ''zero'' balance
Part of the problem is determining what the basis was for the refund. If it was for a deductible for which you were responsible, then the ER has a good claim against you.
Write back to the collection agency disputing the debt, enclose a copy of the hospital bill showing zero balance, and ask for the basis of the hospital's claim. You might also ask your insurance company why they requested a $105 refund.
If the claim is legitimate, then settling it for 75% isn't too shabby.
Re: Collecting debt on a ''zero'' balance
You should never deal with a collection agency under any set of circumstances. Send them a cease and desist letter, stating that you dispute the debt and prefer to deal with the original creditor as is your right under the Fair Debt Collection Practices Act. Send a copy of the letter to the hospital. After allowing time for the hospital to receive the letter, call the hospital to try to resolve. If they refuse to resolve it, you have grounds to file suit against them under the Fair Debt Collection Practices Act, Texas Debt Collection Act, Fair Credit Reporting Act and others.
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