Does The Fair Debt Collection Practices Act Apply On Medical Debt?
I receive email quite often asking me about medical bills and whether they are covered by the FDCPA or at what times the FDCPA applies? Will the FDCPA apply? Yes it will in most cases. Under the Fair Debt Collection Practices Act third-party debt is the only type that is covered. To elaborate, I will go through the typical process of a medical bill and where your rights begin and end.
First, you go to the doctor for some medical reason. When you leave the doctor’s office you forget to pay. Since were talking about medical debts, you are actually supposed to pay before you leave and in full. Since you haven’t paid your bill you are technically already late.
Medical bills, being emergencies usually, are usually given about three months to allow for your insurance to take up for the debt. Not always though sometimes you get no time and sometimes you get a lot. About three months is what your usually going to get. At that time you need to make sure that you get your doctor you insurance information if they don’t have it. If they have it, then give it to them again to make sure they have it. It’s always good to make sure they have it.
Next, first-party collections. This step doesn’t always happen though and it might just go immediately to third-party collections. Payment arrangements are made easiest at this stage. At this point, if you can afford to make a settlement, make the offer here.
The ending step before the collection attorney comes is the collection agency. Sometimes it goes straight to the lawyer though. Whether it goes to an attorney or an agency doesn’t matter when it comes to rights. Right now, the Fair Credit Reporting Act (FCRA) and the FDCPA come in to the picture. Now, credit reports and debt collectors are a factor. Fortunately, this step gets regulated by federal laws.
When a bill is in collections it doesn’t go to your credit report for another 30 days. If your credit is an issue, if you get the bill paid before that time is up, it wont go on your credit report. You want to try to do this because it is important.
The last part is the attorney. You want to keep out of the attorney step if you can. The FCRA and the FDCPA are still in effect. You will get documentation from the attorney that gives your 30 days to get on an arrangement with the attorney or go to court and possible fees and judgment.
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Tags: collection debt, Credit, debt, debt relief, fair debt collection practices, get out of debt
