hospital bill in collection

[Annie]

I received a bill from the hospital for $1600 in August. Since I paid two payments totalling $600. They have now sent me to collections for the $1000 left. I called the agency and was told if I didn't pay the remaining $1,000 by the end of THIS month it would go on my credit report? I thought if you made payments to a hospital they couldn't have it put on your credit report. AND how negative does something like that look on your credit? I have SPOTLESS credit other than this. At the most I wanted maybe 2-3 more payments...but she told me it didn't matter if I paid $999 of the $1000..it still will show if it is not PAID IN FULL. Somebody HELP!!!???

[Recovering Attorney]

Was it the hopsital or a CA who called you?

It is unusual for this type of bill to show up after 90 days. I think whomever talked to you is bluffing. If they call again, get their name and send a C&D letter to them, cc'd to the CEO for the organization. You might want to call the hospital's public relations officer and ask if it is their policy to report people to CRAs

[goodmank]

Unfortunately my experience with hospitals has been that they send accounts straight to collections. The ca will probably place this on your credit report whether you pay before the end of the month or not (it may allready be on your reports). Here is what I have done in the past.

1. Pay the hospital not the ca

2. dv the ca

3. Dispute with the cb (after payment to hospital)

[wunderwoman]

Goodmank gives a great strategy. Here's my 2cents.

I would call the hospital to arrange something. Collection Agencies that work with hospitals are NOTORIOUS for getting judgments against you in a heartbeat. The judgment would be on your file for 7 years. If I were you I would call the hospital accounting department ASAP. I would explain to them that I made two $600 payments and that I make every intention on paying the balance. I would then ask them if I could arrange a payment plan with them. If they simply won't budge and insist that the collection agency now handles the debt, I would write the collection agency and in that letter include a payment plan for handling the debt.

I would send this letter certified mail, return receipt so that if they DID decide to try to get a judgment against me they wouldn't be successful because I'd have a copy of the letter as well as it being received. The courts only want to know your intention to pay.

I would also be sure to make my payments on time.

As far as them reporting it to a collection agency, I would simply communicate to them that they want your money and you want to keep your good credit rating. Both of you can be satisfied by a mutual agreement. Use a statement similar to this in your letter:

Dear Customer Service:

Enclosed please find payment for my hospital account # 123XYZ. Your acceptance of this check and the enclosed payment plan signify that the account will be paid in full by XYZ date and that no record of this account will be reported at any time to any credit bureau. Should I default on this payment plan, I will be in breach of this contractual agreement, thereby invalidating your future reporting procedures.

Thank you for your willingness to work out a solution to this misunderstanding.

Your Truly, Annie

By the way, I think if you can pay this off in two-three payments to the hospital, Goodmank's strategy is best.