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The111

Opinion of legal-types needed...

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Hey look at me, I'm getting legal advice from the internet!

I got an envelope in the mail from my grandmother (who lives in an entirely different city 70 miles away). Something had been sent to her address with my name on it (I have never lived with her), so she forwarded it onto me.

It was a letter from a collections agency saying I owe a $60 debt to a hospital in Orlando. I called the hospital to figure it out since it made no sense and the accounts lady said the debt is leftover from an ER visit in 2000. :S I was 18 years old, covered by my parents' insurance, and a college student. I asked her why I was just getting contacted now, 6 years later, by a collection agency, at my grandmother's address? She said she really couldn't do anything else since it was in the collection agency's hands now, and I'd have to call them.

Now, it's only $60, and it is true I did visit that ER, but the principle bothers me. I have ALWAYS paid all my debts on time or early. I've never used credit cards. To get a call from a collections agency bothers me a lot. This is actually the second time this scenario has happened - a few years ago a collections agency called me about a recent ER visit (geez I go to the ER a lot), and again it was a debt I was not even aware of since the hospital made no attempt to contact me themselves (or, they did, but they got my address wrong and rather than fix their mistake, passed it on to collections).

I guess my question for the legal-types is... is there any sort of "statute of limitations" on something like this? It really pisses me off to hear about this 6 YEARS LATER. I'd imagine, with no real legal experience, that even if it is possible to fight it, it would be more hassle than just spending the $60 to shut them up.

What do you think?
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This is not legal advice:

In Florida, the statute of limitations deadline to start a lawsuit on a debt that is formed by a writing (such as a written promise to pay a debt) is five years from the date the debt was incurred or the date you signed or made the writing, whichever is later. If the debt was not formed by a writing, the statute of limitations is four years. Expiration of the deadline does not extinguish the debt; it only precludes the creditor’s ability to sue to collect it.
Caution: if you acknowledge the validity of the debt in writing, that starts the clock running all over again.

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Here are the Florida statue of limit.:

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Florida Statutes of Limitation

Contract or written instrument and for mortgage foreclosure: 5 years. F.S. 95.11.

Libel, slander, or unpaid wages: 2 years.

Judgments: 20 years total and to be a lien on any real property, it has to be re-recorded for a second time at 10 years.

The limitations period begins from the date the last element of the cause of action occurred, (95.051). NOTE: The limitation period is tolled (stopped) for any period during which the debtor is absent from the state and each time a voluntary payment is made on a debt arising from a written instrument.

Almost all other actions fall under the 4-year catch-all limitations period, (F.S. 95.11(3)(p)).



Does the $60 include any "collection fees" (i.e. is $60 what was owed by you or has interest/fees accrued)?

Have you tried contacting the collection agency and negotiation a "pay-off"? Usually, if they are dealing with an straight up person (i.e. no debts, collections of other kinds) they'll work with you. In the end, it's your choice - how much is $60 really worth to you? And, if you honestly owe the money, then why not just pay up and get it off your credit report? (P.S. be sure you get something in writing from the collection agency showing they have removed the item from your credit report).

"Excuse me while I kiss the sky..." - Jimi Hendrix

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Does it say anything like "If you do not respond in 30 days this debt will be considered valid"? In some states you can write back that you dispute the validity of the debt and they are required to go back to the hospital and provide written verification of the debt.

Zipp0

--------------------------
Chuck Norris doesn't do push-ups, he pushes the Earth down.

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The biggest problem you have is not the $60, the damage that has already been done to your credit rating...



Good point. I'd say, call them up, write to them requesting proof of the validity of the debt. (They're required by FEDERAL law to provide it). If you think it's valid, pay it, for the sake of your credit. You're young; you need good credit for car & home purchases or apartment leases. If you think the debt isn't valid, you could dispute it, if you think it's worth the trouble to you. What's your time worth? When does $60 worth of it accrue?

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Eh, fuck it, I just paid it. My credit rating remains untouched.




wow your easy, where do I send the copy of billing for the money you owe me? :P
Beauty is only skin deep, but ugly goes clean to the bone!

I like to start my day off with a little Ray of Soulshine™!!

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the damage that has already been done to your credit rating...



is minimal compared to the next seven years it will stay on your credit report, after you pay the bill...unless you can work a deal, saying the won't report it.

And unless it's in writing, it's worthless.

Good idea to check the statue of limitations...if it's out of SOL, and you owe the money, and want to pay, work a deal, but again, in writing.

Usual disclaimers apply.

J
Arch? I can arch just fine with my back to the ground.

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You probably did the right thing by paying it, but my understanding is that there is some kind of "statute of limitations" on that sort of thing* AND a $60.00 medical collection won't have much impact on your credit rating.

*My understanding is that for the bill to be valid, the service provider needs to make an effort to collect on it within a certain period of time- unless they can prove they sent out previous bills, they really don't have a right to collect 6 years later.

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they really don't have a right to collect 6 years later.



Bingo! (Depending upon the statute of limitations)

Here is how this stuff works. If the hospital has been unable to collect for a while, they write it off as a loss.

Every once in a while, the hospital "packages" all this uncollected debt and markets it to collection attorneys. The collection agency will purchase that debt package, for pennies on the dollar owed. They, in turn, refresh collection efforts to recover their expenses and make a profit. Even though the debts may no longer be valid and enforceable, enough people will pay up anyway when they are tracked down, to make it worth their while. So they capitalize on ignorance of the law by the debtors.

Doesn't that just make you feel all warm and fuzzy inside?

You probably could have told them to go stick it, with no consequences. And then challenged it if it appeared on your credit report and forced them to remove it.

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