I have been in situations where I had no idea what a firm was actually trying to collect on because it had been passed along (presumably sold) so many times. Each time a debt is going to change hands the current debt-holder should be required to give full disclosure in writing and a clearly stated phone call as to where it's going, why and how the change will effect the debt - will there be a change in interest? In due date? In collection fees? In the way payments are applied or minimum payment amounts? This should be done with ample time for the consumer to understand the change and take any actions. There should also be the opportunity to refuse this process if it entails negative financial changes.
Every debt I've ever had go in to collections has supposedly been given notice in advance. In the case of 2 hospital bills many years ago they claimed to have notified me by mail several times but I had never even received the initial bill let alone the follow ups. Since I was insured at the time I only had to pay a reasonable co-pay and would have readily done so had I gotten the bills (as additional information, in both cases I offered to pay at the time of visit and was told they only bill). This particular hospital has an "in house" collections department so I get the impression that they often neglect to actually send info to patients so that they can then collect the additional fees and interest as profit.
When a debt is turned to collections I feel it might be best if a mandatory 30 day notice outlining what the debt is for, previous contact attempts, amount due, available options such as payment plans and the exact effect of the collections process on the debt is sent to the person in a manner that is trackable and shows the intended recipient had the notice in their possession-perhaps a registered receipt type of delivery.
In my experience, simply contacting a person to collect a debt, time-barred or otherwise, implies litigation is possible and/or impending. It shoud be clearly stated in any communication if the debt is time-barred and these types of debts should not be discussed by a phone call initiated by the collector.
erisgrrrl
1
I have been in situations where I had no idea what a firm was actually trying to collect on because it had been passed along (presumably sold) so many times. Each time a debt is going to change hands the current debt-holder should be required to give full disclosure in writing and a clearly stated phone call as to where it's going, why and how the change will effect the debt - will there be a change in interest? In due date? In collection fees? In the way payments are applied or minimum payment amounts? This should be done with ample time for the consumer to understand the change and take any actions. There should also be the opportunity to refuse this process if it entails negative financial changes.
View this comment in the discussion thread
erisgrrrl
2
Every debt I've ever had go in to collections has supposedly been given notice in advance. In the case of 2 hospital bills many years ago they claimed to have notified me by mail several times but I had never even received the initial bill let alone the follow ups. Since I was insured at the time I only had to pay a reasonable co-pay and would have readily done so had I gotten the bills (as additional information, in both cases I offered to pay at the time of visit and was told they only bill). This particular hospital has an "in house" collections department so I get the impression that they often neglect to actually send info to patients so that they can then collect the additional fees and interest as profit. When a debt is turned to collections I feel it might be best if a mandatory 30 day notice outlining what the debt is for, previous contact attempts, amount due, available options such as payment plans and the exact effect of the collections process on the debt is sent to the person in a manner that is trackable and shows the intended recipient had the notice in their possession-perhaps a registered receipt type of delivery.
View this comment in the discussion thread
erisgrrrl
3
In my experience, simply contacting a person to collect a debt, time-barred or otherwise, implies litigation is possible and/or impending. It shoud be clearly stated in any communication if the debt is time-barred and these types of debts should not be discussed by a phone call initiated by the collector.
View this comment in the discussion thread