Dealing with a medical debt collection agency can be a daunting and overwhelming experience. You may have ended up in a precarious financial situation, not because of anything you did wrong, but because of an unplanned medical expense. Some people get into financial trouble because they cannot control their spending. However, others end up in debt because of unexpected medical surprises, and you may receive collection efforts from the healthcare provider or the debt collector to whom they sold your debt. You must know your legal rights to push back when the debt collector breaks the law.
It is crucial to approach the situation with confidence and a clear understanding of your rights. Some special rules and limits apply to medical debt, and you should be aware of all of them. For example, debt collectors may be trying to collect a debt that is not even valid in the first place. The laws regarding medical billing have recently changed, and some healthcare providers may be unable to send you outdated bills.
If a debt collector is breaking the law, you can make them pay. They are subject to the Fair Debt Collection Practices Act (FDCPA), which allows you to file a private lawsuit against them. However, you want legal assistance from a debt collection lawyer who understands your rights under the law.
It does not cost you anything to hire an FDCPA lawyer, and the debt collector may even cover your legal fees if you win your case.
Make Sure that the Debt is Valid
Recent changes to federal law have eliminated some of the prospect that a debt collector can hit you with a massive surprise debt. The No Surprises Act eliminated charges when you receive emergency care from an out-of-network provider, and your costs are the same as when seeking treatment from an in-network provider. However, the regulations surrounding the No Surprises Act are complex, and healthcare providers and their debt collectors may try to push their luck in attempting to collect from you, even when they had no right to bill you in the first place. If the debt collector tries to report debt subject to the No Surprises Act, they can face legal consequences.
In addition, if you seek care without insurance or pay for it out of your own pocket, the healthcare provider must give you a good-faith estimate before they render service. You may have the right to dispute any charges if they exceed $400 over the estimate they gave you.
Make Sure That the Bill Is Correct
Billing mistakes happen all the time in the healthcare industry. With so many patients and overstretched billing personnel, patients often get drastically wrong bills. There have been horror stories about patients who received outlandish bills only to have the healthcare provider correct them after an investigation. Before you pay anything, make sure that the amount that is subject to collection is correct in the first place.
Try to Negotiate the Debt
Healthcare providers may only bill you the total amount if you can afford it. Otherwise, they may be willing to work with you because they can still get paid instead of running the risk of receiving nothing. You have more power than you think in this situation, and you can negotiate a lower debt or get more time to pay the debt. Debt collectors are often willing to work with you on a settlement because it means they may still make money.
Bankruptcy as an Option to Wipe Out Your Medical Debt
Medical debt often forces many households into bankruptcy because there is little other way to escape crushing obligations. In fact, roughly 60 percent of personal bankruptcies result from medical debt, and close to 650,000 people will declare bankruptcy because of this debt each year.
Bankruptcy is a viable option for many who are facing extreme medical debt. Although it may be the last thing you want to do, there are valuable benefits. The most crucial feature of bankruptcy is that it can either wipe away your debt entirely or give you more time to pay through a restructuring. Either way, you can get breathing room you did not have before. Depending on the type of bankruptcy you file, you may no longer have to worry about calls from debt collectors. When you file for bankruptcy, an automatic stay keeps anyone from trying to collect from you while your case is pending.
The prospect of bankruptcy may give you some leverage when dealing with medical debt collectors. They know they may get little to nothing through the bankruptcy courts after you file for bankruptcy. They will need to jockey with your other creditors to get their hands on your limited assets if you have filed for Chapter 7 bankruptcy. In the meantime, if you successfully go through the bankruptcy process, the court will discharge your medical debt, and you can begin life again with a fresh financial start. However, there is a tradeoff: you must surrender some of your assets that do not fall under an exemption to pay your creditors.
You can negotiate a settlement with the medical debt collector that will result in you paying far less than you originally owed, using the prospect of bankruptcy as leverage in the discussions. This result can be a win-win for both you and the debt collector. They will receive something for your debt that they otherwise may not have gotten, and you can settle your debt for less without declaring bankruptcy.
There Are Limits on What Debt Collectors May Do
The healthcare provider may sell your debt or enlist a debt collector to try to get money on their behalf. Debt collectors can be very aggressive when trying to collect because they stand to make a large amount of money if you pay your debt in part or full. Thus, they may use shocking tactics to pressure or scare you into paying them.
Federal law protects you from egregious collection efforts and restricts what the debt collector may do to get your money. A federal law called the Fair Debt Collection Practices Act makes many practices illegal. You need to know the law and your rights so you can put a stop to unlawful debt collection efforts.
Debt collectors must abide by the following restrictions, or they can face consequences:
- They cannot call you between 9 PM and 8 AM.
- They cannot call you repeatedly to harass or annoy you.
- If you tell the debt collector to stop calling or contacting you, they must heed your wishes (although they can still take legal measures to collect on the debt).
- They must identify themselves when they contact you.
- They must provide information about the debt they are trying to collect.
- They cannot pretend to be someone else when trying to contact you (such as pretending to be a lawyer to frighten you).
- They cannot inform third parties, such as your employer, about your debt.
- They cannot use profanity or verbally berate you when they call.
Unfortunately, many debt collectors are overaggressive when trying to collect your debt. It does not matter that you incurred the debt through no fault of your own; they may still cross the line.
Always Monitor Your Credit Report
When collecting a medical debt, the collector cannot use coercive practices and can only report your debt to a credit bureau if they attempt to collect from you first. Then, they must report accurate information on your credit report, or they can face consequences.
You must be vigilant about monitoring your credit report to see any furnished information about you, and you need to push back and contest any wrongful data. You can dispute any incorrect information with the credit bureau, which is obligated to investigate your dispute reasonably. If the credit bureau fails to uphold its obligations, you can file a lawsuit against them under the Fair Credit Reporting Act. You may be eligible to receive both statutory and actual damages you have suffered from wrongful conduct.
You May File a Lawsuit if a Debt Collector Breaks the Law
If a medical debt collector goes too far and breaks the law, you can hold them accountable through a lawsuit. The FDCPA allows you to become your own attorney general, so to speak, by giving you a private right of action. You do not need to wait for the state or government to punish the debt collector.
Your lawyer can file a lawsuit on your behalf, seeking the damages you have suffered through the debt collector’s wrongful actions. You can file an individual or class action lawsuit (if numerous people suffered the same exact harm as you did). Defendants often do whatever is in their power to fight the certification of a class because they know that it makes it easier for them to deal with a lawsuit.
Under the FDCPA, your damages include:
- Statutory damages of up to $1,000
- Attorney’s fees
- The financial damages that you suffered from the wrongful conduct
- Emotional distress and other non-economic damages that were due to the outrageous conduct
The FDCPA does not allow for punitive damages, but you can obtain them if you file a lawsuit under state law, similar to federal law.
You should get a lawyer’s help when subject to illegal medical debt collection practices. A debt collection attorney knows the law, and they can tell you whether you have a potential lawsuit against the debt collector. They can prepare and draft your complaint, which begins the lawsuit process. Your attorney can also give you advice about what you can do to make illegal medical debt collection practices stop. Many people do not know the law and believe they must put up with unlawful conduct because they are in debt.
You Can Also File a Complaint with the State or Federal Governments
Debt collectors can face enforcement actions when they break the law. On the federal level, you can report the debt collector to the Federal Trade Commission, tasked with enforcing the FDCPA. The FTC may investigate and issue a fine if they determine that the debt collector violated the laws. However, this fine gets paid to the government and not to you for the harm you have suffered. You can also file a complaint with the attorney general in your state, who may be willing to investigate any violations of the laws. Filing a complaint can help ensure that others may not have to deal with the same experience that you did, and it may help stop the harassment.
There Is No Risk to You When Hiring an FDCPA Attorney
When dealing with debt collection, it is crucial to have a knowledgeable and experienced debt collection lawyer by your side. Debt collectors can be overwhelming and intimidating, but with the help of an attorney, you can protect yourself and your rights.
An attorney handling debt collection cases understands this area’s laws and regulations. They are well-versed in the FDCPA and other relevant legislation, giving them the experience needed to navigate complex legal matters.
One of the key benefits of hiring an FDCPA lawyer is that they can act as a buffer between you and the debt collector. They can communicate directly with the collectors on your behalf, ensuring that the debt collectors respect your rights and do not engage in harassment or abusive practices. This protection can provide much-needed peace of mind during a challenging time.
If you are wondering how much it costs to hire an FDCPA attorney, the answer is that it may be nothing. An FDCPA attorney works for you on a contingency basis, meaning they only get paid if and when you win your case. They do not ask you for any money upfront, nor do they send you bills while your case is pending. If you win your case, the attorney’s fees may come from a percentage of the award or settlement. You do not have to take any risk to get legal help when a debt collector is harassing you and breaking the law.
Hiring a consumer protection lawyer is a wise decision when facing debt collectors. They can protect your rights, provide guidance, and guide you through the complexities of debt collection. With their support, you can take control of your financial situation and work towards a brighter future.