Legal Question in Credit and Debt Law in Utah

Collection Agency trying to collect a mistake from provider!

I asked a question a couple weeks ago and was advised to ''resurrect the Medicaid claim''.

Briefly, the situation was:

My wife was covered by Medicaid in Utah in May 2004. A few months ago, my wife got a phone call from a collection agency requesting a payment. She told them that she had Medicaid. They said they will try to bill them. However, a few weeks ago, they call again saying that Medicaid declined it and that we had to pay.

UPDATE:

My wife called Medicaid and got the person in charge of those kind of cases. She replied that the provider got paid for May 4th but they never received a bill for May 6th (the one from the collection agency). She also stated that under Federal Regulations, since they accepted Medicaid, the provider has to contact Medicaid only, and should not bill us.

We contacted the provider. Unfortunately, they changed their billing dept. 4 times since! They have no clue concerning this bill. My wife was advised to send a letter to the collection agency and contest the charge, and remove everything from my wife's credit report. They implied they will do it if they get paid within 30 days! I found this outrageous! What should we do if they don't close the case after receiving the letter? Thanks


Asked on 5/24/06, 12:02 pm

1 Answer from Attorneys

Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Collection Agency trying to collect a mistake from provider!

The collection agency is required by law to provide proof of the debt within 30 days of receipt of a written request. If they did not provide proof, then they have violated the law and cannot legally continue collections. Many collection agencies violate the FDCPA (Fair Debt Collections Practices Act). Talk to an attorney

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Answered on 5/24/06, 12:21 pm


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