There’s no better feeling than knowing your bills have been paid. However, when you receive a call or knock on the door from a debt collector in regard to an outstanding balance, you may assume they have the wrong person. Upon closer inspection, you may find that they are actually referencing a medical bill you’ve already handled. These circumstances can be incredibly frustrating, which is why it’s critical to understand how these situations can arise and the steps you can take to remedy the matter. The following blog explores what you should know and the importance of connecting with a California consumer lawyer to assist you through these matters.
Why Would a Paid Medical Bill Go to Collections?
Unfortunately, there are a number of reasons that a bill that has been paid would be sent to collections. Generally, you’ll find that one of the main reasons is due to processing errors. If the system the medical office uses to track bill payments glitches, you’ll find that it may not register your bill as paid. This can lead to the bill being sent to collections despite the fact that you have paid it.
Another reason it may be sent to collections after payment is if your billing information has not been updated. The payment may not be processed correctly if you have moved, for example, and failed to update this information. In other instances, the payment may go through but appear as unpaid because it is not associated with your balance.
Finally, if you make a late payment on the bill, it may be sent to collections before the creditor is able to update the status of your balance.
How Can I Dispute This Matter?
If you are contacted by a collection agency in regard to a debt you’ve already paid, you may assume you can ignore the matter. However, this is not recommended. Failure to respond to collection matters, even ones that you believe to be errors, can result in a lawsuit against you. As such, you should take action to remedy this matter.
One of the most important steps you can take when contacted by a collector regarding a paid bill is to submit a debt verification letter. This requires the collector to provide a statement with the original creditor’s information and the amount owed. You should send this information via certified mail, as it will provide you with proof of receipt.
You may also want to send any proof you have that the bill has been paid, whether this is a credit card statement showing the posted amount has been handled or a receipt from the medical office with the full balance paid.
When the collector obtains proof of the error, they are responsible for contacting the credit reporting agency to have this matter removed from your report. If they still believe the bill is unpaid, you may want to contact the original creditor directly to attempt to remedy the matter.
In the event you are unable to have this matter fixed on your own, it’s in your best interest to work with an experienced consumer defense attorney with Los Angeles Legal Solutions. Our team understands how frustrating these situations can be, which is why we are committed to fighting for you. Contact us today to learn more.
