Credit Score Question - Debt Collector coming after us for $100 (1 Viewer)

[Insein]

So my wife has a debt collector coming after us really hard for this phantom $100 bill that was covered by her old employers deductible. We have no records of the deductible being paid because it was simply mailed away to a 3rd party and then paid by them when the EOB came.

Fast forward 4 years later and the place she had the medical visit done is out of business. They have no records of the appointment. Yet this debt collector pops up out of no where with real nasty threats about taking us to court over the $100. When my wife tries to talk to them and find out what it is or to have them show us documents, they are extremely rude to her and treat her like she never pays her bills. 

The thing is when I look at our credit report, I don't see this supposed unpaid bill on it anywhere. Is this place full of #### or can they actually do something with this supposed unpaid bill to ruin her credit?

 

[otb_lifer]

they buy the debt for pennies on the dollar, then strongarm folks into coughing up face value - it's a scam worse than bookie vig. 

#### them.

 

[Insein]

they buy the debt for pennies on the dollar, then strongarm folks into coughing up face value - it's a scam worse than bookie vig. 

#### them.

That's what I'm thinking of it. They don't have the means or the want to actually follow through on their threats. Would cost them too much when they're just looking for quick cash.

 

[[scooter]]

Tell the collector to stop calling you and to only contact you via mail.

Tell him that you're going to record every conversation and report him to the police for harassment.

Wait, hold on. The first thing you should do is confirm the guy's name, address, and phone number. Then tell him to stop calling, that you're recording his calls, and that you're going to call the police.

Oh, and don't pay the $100. Ever.

 

[[scooter]]

The thing is when I look at our credit report, I don't see this supposed unpaid bill on it anywhere. Is this place full of #### or can they actually do something with this supposed unpaid bill to ruin her credit?

It's possible that the medical office reported the "debt" to one of the 3 credit agencies -- not because you failed to pay the bill, but because they failed to document it. But if that's the case, then the debt has already affected your credit (at one of the other 2 agencies). The only way that the debt collector can legally get the money is by taking you to court and proving that the $100 debt is legit. And he's not going to even try to do that.

 

[Cowboysfan8]

they buy the debt for pennies on the dollar, then strongarm folks into coughing up face value - it's a scam worse than bookie vig. 

#### them.

This

 

[Henry Ford]

So my wife has a debt collector coming after us really hard for this phantom $100 bill that was covered by her old employers deductible. We have no records of the deductible being paid because it was simply mailed away to a 3rd party and then paid by them when the EOB came.

Fast forward 4 years later and the place she had the medical visit done is out of business. They have no records of the appointment. Yet this debt collector pops up out of no where with real nasty threats about taking us to court over the $100. When my wife tries to talk to them and find out what it is or to have them show us documents, they are extremely rude to her and treat her like she never pays her bills. 

The thing is when I look at our credit report, I don't see this supposed unpaid bill on it anywhere. Is this place full of #### or can they actually do something with this supposed unpaid bill to ruin her credit?

What was the date the original debt was due? Four years is a long time for a debt on an open account.  

 

[rockaction]

I'd definitely listen to [scooter] and Henry Ford. You have rights as a consumer under various federal and state acts.

That said, dental and doctor billing has gotten way out of control regarding deductibles and other things. It could very well have been an oversight on the office's part in billing you. 

 

[Insein]

What was the date the original debt was due? Four years is a long time for a debt on an open account.  

I think the original appointment was 2016. Possibly January. Maybe December 2015. The account doesn't show on our credit report and the doctors office never contacted us in all those years. Theyve been out of business since early 2018. 

The way her previously employers insurance worked (charter school) was when  we received a bill or EOB, we sent it to a 3rd party payer that covered the deductible costs. They had paid out a bunch of others like this for us with no problems. 

 

[Insein]

I'd definitely listen to [scooter] and Henry Ford. You have rights as a consumer under various federal and state acts.

That said, dental and doctor billing has gotten way out of control regarding deductibles and other things. It could very well have been an oversight on the office's part in billing you. 

That's what I'm thinking. It may have been an accidental double dip with the way it was being paid by a 3rd party. But it never was resolved until they went out of business and sold their debt accounts.

 

[Henry Ford]

I think the original appointment was 2016. Possibly January. Maybe December 2015. The account doesn't show on our credit report and the doctors office never contacted us in all those years. Theyve been out of business since early 2018. 

The way her previously employers insurance worked (charter school) was when  we received a bill or EOB, we sent it to a 3rd party payer that covered the deductible costs. They had paid out a bunch of others like this for us with no problems. 

Can you contact that third party payer and tell them what’s going on?

Otherwise you’ll probably be fielding these phone calls for months. 

 

[Insein]

Can you contact that third party payer and tell them what’s going on?

Otherwise you’ll probably be fielding these phone calls for months. 

That was going to be my next move if it escalated. I'll give it a shot.

 

[Henry Ford]

That was going to be my next move if it escalated. I'll give it a shot.

Realistically, you’re going to get more and more of these calls until you hit the “four years from past due” mark. 

 

[Insein]

Realistically, you’re going to get more and more of these calls until you hit the “four years from past due” mark. 

Gotcha. I usually never answer unknown numbers but my wife always has to pick up just in case. That's probably how they marked it as a live lead.

 

[[scooter]]

I think the original appointment was 2016. Possibly January. Maybe December 2015. The account doesn't show on our credit report and the doctors office never contacted us in all those years. Theyve been out of business since early 2018. 

The way her previously employers insurance worked (charter school) was when  we received a bill or EOB, we sent it to a 3rd party payer that covered the deductible costs. They had paid out a bunch of others like this for us with no problems. 

Can you contact that third party payer and tell them what’s going on?

Otherwise you’ll probably be fielding these phone calls for months. 

I don't think the third party will be able to erase the debt -- once the debt collector buys it, they own it. But if you can get a proof of payment from the third party, then you can show it to the debt collector and that should stop them from calling.

 

[Insein]

I don't think the third party will be able to erase the debt -- once the debt collector buys it, they own it. But if you can get a proof of payment from the third party, then you can show it to the debt collector and that should stop them from calling.

That's what I was hoping for.

 

[The Commish]

What paperwork have they provided you showing you even owe the money in the first place?  I had this creep up on a medical bill a couple years ago.  Everything was zero'd on our accounts and I had paid every bill that I had received.  I got a letter from a collection agency and I responded via letter with a picture of our accounts zero'd out.  Never heard from them again.

 

[The Big Guy]

Creditboards is the forum to assist here. They have tons of people helping tons of people that have been through this very thing before. There will be step by step instructions on what to say and what to not say to these people and ensure that the debt is valid or just a phantom claim.

 

[Insein]

What paperwork have they provided you showing you even owe the money in the first place?  I had this creep up on a medical bill a couple years ago.  Everything was zero'd on our accounts and I had paid every bill that I had received.  I got a letter from a collection agency and I responded via letter with a picture of our accounts zero'd out.  Never heard from them again.

They have provided zero paperwork. Just phone calls. Never got a bill from that doctor's office over the last 4 years. May have received one back when the appointment was buy I don't remember that now.

 

[The Commish]

They have provided zero paperwork. Just phone calls. Never got a bill from that doctor's office over the last 4 years. May have received one back when the appointment was buy I don't remember that now.

I'd write them a letter saying based on your documentation, the account is settled and unless they can provide you with evidence that you owe more (simply being given your account by your provider is NOT proof) you are considering the matter closed.  You want an itemized bill of services not paid for.

 

[IC FBGCav]

Damn, first thing is to dispute the claim with the collection agency.  Bad advice in here.

Dispute in writing but you might have missed your window.

 

[Gawain]

Damn, first thing is to dispute the claim with the collection agency.  Bad advice in here.

Dispute in writing but you might have missed your window.

Think he wants to send a debt validation letter letter if he's not more than 30 days from the first notice:

Debt Validation

 

[IC FBGCav]

Think he wants to send a debt validation letter letter if he's not more than 30 days from the first notice:

Debt Validation

I get it but always dispute bs in writing.  It puts the burden on them to prove.

 

[Wingnut]

o

So my wife has a debt collector coming after us really hard for this phantom $100 bill that was covered by her old employers deductible. We have no records of the deductible being paid because it was simply mailed away to a 3rd party and then paid by them when the EOB came.

Fast forward 4 years later and the place she had the medical visit done is out of business. They have no records of the appointment. Yet this debt collector pops up out of no where with real nasty threats about taking us to court over the $100. When my wife tries to talk to them and find out what it is or to have them show us documents, they are extremely rude to her and treat her like she never pays her bills. 

The thing is when I look at our credit report, I don't see this supposed unpaid bill on it anywhere. Is this place full of #### or can they actually do something with this supposed unpaid bill to ruin her credit?

Collection agencies can and do report debts they buy to the credit bureaus. Hospitals and medical offices rarely report because they just write off unpaid bills/debts.

Years ago I had a bunch of unpaid medical bills that were on my credit reports (all from collection agencies). I did the whole debt validation letter thing and most of them had to delete  from my credit reports because they couldnt prove that I owed them a dime.

For one of the accounts, I paid the original debtor and then sent proof of payment to the collection agency and they deleted their collection from my reports.

Like otb said, they buy the debts for pennies on the dollar and then try to collect the entire debt. Dont give in.

 

[Angry Beavers]

This is all good advice

Tell them to pound sand

 

[Don't Noonan]

This is all good advice

Tell them to pound sand

Doesn't seem very nice... @Sand

 

[Sand]

Doesn't seem very nice... @Sand

What do you expect from an angry beaver?  At least he didn't gnaw on me.

 

[[icon]]

I get it but always dispute bs in writing.  It puts the burden on them to prove.

This. 

Formally challenge the debt 

Send them a letter telling them to go fork themselves 

 

[NutterButter]

If you own your house outright (or at least already have a mortgage that you don't intend on refinancing and you don't plan on ever needing a new mortgage), you pay for car purchases in cash and you don't carry a balance on credit cards, does having just ok credit b/c of shakedowns like this really even matter?   

 

[Angry Beavers]

for 100 this is not likely to have any negative impact on your credit. You can also place a dispute on your credit report

Sorry @Sand  I didn't realize we had a "sand" in our midst...  LOL

 

[James Daulton]

If you own your house outright (or at least already have a mortgage that you don't intend on refinancing and you don't plan on ever needing a new mortgage), you pay for car purchases in cash and you don't carry a balance on credit cards, does having just ok credit b/c of shakedowns like this really even matter?   

So if you're in the 0.1% of the population the above applies to we can ignore our credit score.  

Gotcha.

 

[[scooter]]

If you own your house outright (or at least already have a mortgage that you don't intend on refinancing and you don't plan on ever needing a new mortgage), you pay for car purchases in cash and you don't carry a balance on credit cards, does having just ok credit b/c of shakedowns like this really even matter?   

If you're certain that you're NEVER going to use your credit, then yeah I guess it doesn't matter. But your credit score can affect you in ways that you might not realize (for example, a low credit score can lead to higher car insurance rates).

 

[NutterButter]

So if you're in the 0.1% of the population the above applies to we can ignore our credit score.  

Gotcha.

I'd think it would be more than that but I have no idea.   I fall into that category so I was curious.  I'd think that others on this board would as well.   I'll probably die in the house I'm living in now and have already refinanced when rates were rock bottom.  If I ever did move, it would be to a cheaper location so I'd have the money from my current house to pay in cash if I chose.   Paying for a car in cash just makes too much sense to me unless you're getting a really low rate.  We all know not to carry a balance on a credit card.   

 

[NutterButter]

If you're certain that you're NEVER going to use your credit, then yeah I guess it doesn't matter. But your credit score can affect you in ways that you might not realize (for example, a low credit score can lead to higher car insurance rates).

Good to know.  Outside of the obvious, I have no idea how your credit is used.  I figured that terrible credit would come back to bite you in some way but didn't know if a few dings here and there would.

 

[[scooter]]

If you're certain that you're NEVER going to use your credit, then yeah I guess it doesn't matter. But your credit score can affect you in ways that you might not realize (for example, a low credit score can lead to higher car insurance rates).

Good to know.  Outside of the obvious, I have no idea how your credit is used.  I figured that terrible credit would come back to bite you in some way but didn't know if a few dings here and there would.

Some "dings" (like a late payment on your credit card bill) will go away after a few months. More serious things (like a debt that went to collections) will go away after a few years.

Your credit score can be accessed for a wide variety of reasons -- not just when you buy a house or a car, but also when you rent an apartment, or sign up for a bank account, or get a new credit card, or refinance your house, or sign up for a cell phone or for cable, or buy insurance. If you're going to do any of those things, then it's wise to have good credit.

 

[NutterButter]

Some "dings" (like a late payment on your credit card bill) will go away after a few months. More serious things (like a debt that went to collections) will go away after a few years.

Your credit score can be accessed for a wide variety of reasons -- not just when you buy a house or a car, but also when you rent an apartment, or sign up for a bank account, or get a new credit card, or refinance your house, or sign up for a cell phone or for cable, or buy insurance. If you're going to do any of those things, then it's wise to have good credit.

Lots of good stuff here.   Does it matter the size of the debt; so missing a $20 bill vs a $2000 bill?    And say you have otherwise great credit, but every few years, a bill like the one that the OP mentioned just pops up for say $100 and you don't pay it b/c you think its bogus.   I'd imagine that would knock your credit down a bit but it would still be solid.   That's really what I was getting out originally.  I'm not saying just run your credit into the ground, but if on occasion some collection agency is trying to shake you down, you can just tell them to eff off.   Insurance might be a case where it does come back to bite you b/c those rates are adjustable.  But its not like if you just have good credit instead of great credit you're not going to get cable or have to pay a different amount.  

 

[[scooter]]

Lots of good stuff here.   Does it matter the size of the debt; so missing a $20 bill vs a $2000 bill?    And say you have otherwise great credit, but every few years, a bill like the one that the OP mentioned just pops up for say $100 and you don't pay it b/c you think its bogus.   I'd imagine that would knock your credit down a bit but it would still be solid.   That's really what I was getting out originally.  I'm not saying just run your credit into the ground, but if on occasion some collection agency is trying to shake you down, you can just tell them to eff off.   Insurance might be a case where it does come back to bite you b/c those rates are adjustable.  But its not like if you just have good credit instead of great credit you're not going to get cable or have to pay a different amount.  

Once an unpaid debt is sent to collections, then the size doesn't matter that much. Your credit score is going to take a hit. @Insein probably took a hit to his credit years ago, but may not have noticed because he didn't use his credit (or because he already had good credit, and his score didn't drop enough to make a big difference).

 

[Insein]

Once an unpaid debt is sent to collections, then the size doesn't matter that much. Your credit score is going to take a hit. @Insein probably took a hit to his credit years ago, but may not have noticed because he didn't use his credit (or because he already had good credit, and his score didn't drop enough to make a big difference).

Could be. Never noticed it on there though.