Collection Agencies – Do Not Be Intimidated

Have you received a demand for money that you do not owe?

I received a $250 bill from a doctor’s office for services rendered almost two years earlier. Knowing that I had paid this bill, I wrote back to the doctor’s office, requesting that they double check their accounting and/or send me more details of this bill. I was not inclined to start digging through old check books.

I did not hear back from them. But, I did get a letter from a collection agency demanding payment, threatening legal action and providing negative information to the credit reporting agencies. Not wanting to address any more “headaches” than the average day brings, I thought about paying, just to get this resolved.

I saw in the letter’s fine print, that there was a mechanism for demanding that the collection agency provide proof of the debt. So, I asked for full details and for a signed statement from the doctor’s office that they performed their due diligence to assure that this was not their error.

Months later I received a response – a form letter from the collection agency that the claim was dropped and that the credit reporting agencies were requested to remove this claim. The letter also advised me to maintain the letter, just in case the credit reporting agencies fail to take corrective steps. No apology and no compensation for my time.

Why doesn’t the doctor face any consequences for sending a bill that was not due? Why doesn’t the collection agency face consequences for not first confirming the claimed debt before threatening me?

How many people pay these bills that are not due, just out of fear of the consequences? That is what makes this tactic so profitable. Send the bill, if people pay – easy money. If not, there appears to be no downside. I am not suggesting that these are deliberate and fraudulent attempts to collect money, but anyone claiming a debt, and the collection agency should be required to perform some due diligence or face a penalty. Then, they may do their homework before harassing you.

Do not be intimidated by collection agency threats. If you owe money – pay the bill. If you are having financial difficulties, work out a payment plan. Any legal concerns should be addressed with an attorney.

A collection agency is private, commercial entity. They make money from getting your money. They have no legal authority other than that of any citizen to bring a lawsuit. But, if you do not owe the money, remember what Abe Lincoln said, “Be sure you put your feet in the right place, then stand firm.”