An already-paid bill sent to collection

[lowereastside]

I have a question about disputing a collection.

My mother paid a medical bill before the due date that was nevertheless sent to a collections agency. Her has a bill showing that it was due September 11th. She received a copy of a receipt from the Doctor's office showing she paid her bill September 7th, and her credit card statement also shows the charge occuring before September 11th as well.

She did receive a "last notice" type letter from the doctor about a week ago, but we called the office to ask what was going on, and they assured us that her bill was paid in full and that it wouldn't be sent to a collections agency.

I was wondering what her next step should be. At this point, is it too late to deal with the doctor's office directly? Or should I go ahead and file a dispute with the collection agency itself? Should I file a dispute with the three credit report agencies now as well, or wait until the matter is resolved?

I've looked at pre-written collection dispute templates online, but they seem a little harsh/over the top for a situation that I think should be cut and dried. Would sending one of those be an overreaction?

Thank you for your help!

[EDIT] Forgot to include that we live in California.

Edited September 21, 2010 by lowereastside
forgot to include my location

[WhoCares1000]

I would file a dispute with the collection agency and contact the doctor's office. If the office manager will not help you, find a way to contact the doctor him/herself.

[Massive]

Depends on how you want to handle it. I'd get competent fact evidence from the Doctors Office stating that the bill has been paid. After having that in my possession I would either send a copy of it to the collection agency along with a cease and desist letter or I would string them along and wait for an eventual lawsuit and counter sue for more than they would sue you for. I'm thinking you want it taken care of right now so present the authenticated evidence and be done with it.

[lowereastside]

Thank you for your fast responses! I've been driving myself nuts googling this stuff and reading horror stories about whychat HIPPA violations and collections agencies digging their heels in. I definitely want to get this taken care of as soon as possible. My mother goes back and forth between wanting to buy an investment property, so the last thing she wants on her credit reports is a collection in case she decides to take the plunge.

Are the bill statements/receipts/credit card statements I have not enough? I'm waiting for a phone call back from the office manager, who was too busy to talk to me right now, but regardless I guess I am a little hesitant to trust anything over the phone at this point, given that I was told over the phone that everything was fine, and it obviously is not.

Nevertheless, I assume I won't have any problem getting documented evidence from the doctor's office showing that she paid in full on time. In that case, is just a dispute/validate letter, with accompanying documents, sufficient? Do I wait until this is all over to deal with potential consequences to her credit report? Or will there be no consequences to her credit report (a girl can always hope...)

Also, rawr! I guess I'm just a little frazzled to be dealing with a collection for a bill that was paid on time!

[EDIT] Just got a call back from the office manager, apologizing for the mistake. She can't explain why we got sent to a collections agency but assured me that they have canceled the collection, that we will receive a letter from the Collection agency thanking my mom for her payment, and that they are mailing us a copy of her account, which will show the balance was paid on time in full.

They also said this should have no adverse affects on my mom's credit report and won't even show up on her credit reports. Which would be the optimum result, of course, but again, this was all over a telephone conversation.

At this point, what should I be doing? Should I still file the dispute with the collections agency or is the office retracting it enough? Should I be monitoring my mother's credit reports? She's already used up two her of free reports, so is it worth it to buy access to her reports, or am I able to wait until next year?

Edited September 21, 2010 by lowereastside
got a call from the manager

[Massive]

I think the Office Manager will do as she stated, so I would hold on and see if she indeed did take care of it.

[WhoCares1000]

I would give it time for the Office Manager to do her thing and see what happens. If you do not get anything in the mail in a week or 2, call back. After 3 weeks, send a DV to the collection agency. Send nothing else as they have to verify, not you (or your mother).

[Flyingifr]

Send a Cease-Comm letter to the CA just to protect your FDCPA rights, disputing the debt and telling them that if they place it on mom's CRA the FDCPA/FCRA lawsuit will be immediate and automatic with no warning.

If the doctor did pull it then nothing will happen. If the Doc didn't or the CA decides to do something stupid, then you can show the Judge that you warned them....

All you have now is verbal promises which are useless when push comes to shove.