Medical Collection Letter

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The debt collection letters generally escalate from gentle reminders to advanced reminders and finally urgent reminders, which usually indicate legal action as the next form of recourse. Most companies will make use of collection letters before approaching the court to enforce consumers' debt obligations.

Medical Collection Letters Have Two Primary Objectives:

  • Collect overdue funds.
  • Maintain customer relationships.

Purpose Of A Debt Collection Letter?

Companies will send debt collection letters to achieve one, some or even all of the following purposes:

  • Establishing a payment process: If you inform the creditor of cash flow issues they may offer a payment plan in your debt collection letter.
  • Informing debtors that they owe you money: This aims to remind the client of their existing debt and the agreed due dates. Legal action will generally only be hinted at if consumers attempt to ignore the collection letters.
  • Starting legal proceedings: Companies may use debt collection letters to indicate their intention to use legal action to enforce the debt obligation. This will occur if a consumer has failed to make payments for an extended period of time, usually after 60 – 120 days.

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How To Respond To A Collection Letter?

  • Ask for a written notice of the debt: Debt collectors must provide a written notice upon request of the consumer. As required by the Fair Credit Reporting Act (FCRA).
  • Confirm the debt is within the statute of limitations: Confirming the debt is within the statute of limitations as set out by your state, allows you to take the necessary steps to prevent a collector from taking legal action against you if it exceeds the statute of limitations.
  • Have the debt verified: Debt records aren’t free of error, you may request the verification of a debt being collected as provided by the FCRA. If the collection agency cannot verify the debt you may dispute it to have it deleted from your report.
  • Dispute the debt: If the required evidence cannot be produced to confirm the debt is yours, you may dispute it. The dispute letter allows you to include any evidence or supporting documents to verify your claim.

Bottom Line

If you receive a medical debt collection letter it is important to address it immediately to avoid a negative impact on your credit score. Consider the above responses and how accurate you believe the debt to be.

If you find writing up a validation letter challenging, contact Credit Sage today and have it done professionally for you.

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