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Debt Validation and Protecting Credit - Timelines


bktalk2003
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Hi, I am helping a friend with validating a debt and trying to protect their credit and the debt hitting their credit.

 

The debt has already gone to collections and they have sent the initial Debt Letter, we responded within the 30 days with a Debt Validation letter. We received a response about 2 weeks later with all the paper work showing my friends signature on the documents, the itemized charges etc... Here is the detail.

 

My friend took their son to the dentist, the dead beat dad said he had insurance and the dentist charges were sent to the insurance later to find out the insurance was no good because the dead beat dad lost his job. My friend wouldn't have taken their kid to the dentist knowing the insurance was not good, now they are stuck with a 750$ debt because the insurance denied the claim. Since the mother put all the paper work in her name as the Responsible Party, but Also listed the Dead beat dad's name, it would indicate they are both responsible.

 

The collections company has added 250$ fee on top of the 750$, so the total debt now is about $1000. 

 

We want to recover at least half of the funds, if not all through taking the Sons father to court and putting through a simple claims court for half, or the full amount.

 

In the mean time the debt is still outstanding. How do we protect the credit while we pursue the court claim in an attempt to recover some of the debt?

 

When a collection company sends a letter, you have 30 days to respond, once they respond is there another 30 days for a rebuttal letter? When would it hit the credit report if it does? We haven't puilled the credit yet and I don't think it has but we are trying to protect the credit.

 

 

Do we have any leverage with court processing documents waiting on the court date as part of the debt validation to "buy" more time before the collection agency takes further action? Should my friend just pay the debt, then battle it out in court with the father to recover the funds? What about the $250 fee the collection agency is charging? That seems a very high fee amount.

 

Please advise on suggested next steps.

 

 

 

 

 

 

 

and we are about 15 days past the debt validation letter.is valid but we wanted to make sure the 

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I cannot address the debt validation matter, or how to deal with the collection agency.

 

But normally, in terms of medical bills, you can negotiate a payment plan with the doctor, and he or she will usually accommodate.  Call the doctor's office, and ask to talk to the person responsible for billing.

 

Propose a payment amount per month, such as $50 per month, without interest.  Furthermore, you can negotiate a discount on the full amount, and request the "cash price", for patients without insurance.

 

My friend had a big deductible with a hospital, after insurance, and negotiated $50 per month (no interest), and it was paid off in 12 months.  The account was always current.

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We are already past the point of dealing with the dentist... This originated back in Feb. unfortunately payments were missed hence it went to collections. Were just trying to avoid it going on credit report.

Also by law if it's being disputed with CA, it can't be reported to the CB.

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Also by law if it's being disputed with CA, it can't be reported to the CB.

True, but if its already on the CRs, all they have to do is mark it "in dispute".  There's a good chance they reported before they sent the DV,

 

Also...its never to late to deal with the dentist.  If the dentist's billing department tells you otherwise, talk to the doctor directly.

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Personally, i would never deal with a CA.  You cannot trust them...their business model is built on half truths and threats.  I would call the dentist and tell them it is my personal policy not to deal with CAs, and if they want their money, they'll deal with me directly, or take me to court and we'll let the judge decide.

 

If you feel you have to deal with the CA, read the terms and conditions of the original contract.  See if it specifically says you're responsible for collection costs.  If not, then the CA's $250 is bogus.  And, negoiate with the CA ONLY in writing.  (You might want a lawyer involved).

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If you feel you have to deal with the CA, read the terms and conditions of the original contract. 

 

This.  If it says you will be liable for fees if it is placed in the hands of an attorney, and the CA is attempting to add their fees to the balance (assuming it ios not an attorney's office), or doesn't say anything about costs of collection, you have an FDCPA violation.

 

As far as going after the father in court, it is likely to be a waste of time, effort and money, even though it may be personally satisfying.

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