Reader’s Question

Dear Ryan,
A majority of my credit reporting issues are, unfortunately, alot of medical bills I’ve been unable to pay over time. Not sure how these are seen in terms of the statute of limitations, but I recently received a letter from the collection agency that owns all of my accounts, and that partial payments were no longer accepted. Strangely enough I had previously paid off two of the accounts, online, with receipts for each.

Even more strange, of the 5-6 accounts they listed, their 2nd page showed a totally different amount as ‘principal’ due, excluding interest to date, from the first page listing all the accounts. The oldest debt being reported is 2006, which I believe may very well be close to it’s statute but I’m not sure. I’m not sure if I should respond, correcting these folks of their totals, or dispute it in general.

My Response

Hi [name removed] -
The statue of limitation is 7 years in most states — it doesn’t matter if it’s a medical bill. Also, a collector who says that “partial payments” are no longer accepted is lying. Collectors are, for the most part, scum –they will tell you anything to get you to pay. They are simply trying to scare you and I bet would be more interested in cutting a deal with you if you were to say, “Well then I suppose you get nothing”. Keep on pushing them and they will eventually take an offer.

In regards to the paid off accounts and the incorrect account balances. You need to print out the receipts you have and any other documentation that proves these accounts are paid off. Mail these documents to the collection agency and tell them that by federal law you have the right to request that they provide solid proof that the debts are yours. In many cases, they simply cannot do this –either because they were lying or because they don’t know how to do their books. Hang in there.
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Best,
Ryan