Do I pay CA or negotiate harder?

[lily7]

I have a small problem. My husband recently received a letter from a debt collection agency stating that my husband owes something like $150 for a medical bill. I checked my records and determined that he does indeed owe this money - from 2008. The problem is that we never received any bills from the hospital. I called the hospital and we figured out that they had been sending bills to the old address. They also told me that this debt has been assigned to a collection agency - CMC. I called the collection agency and they said that they've been sending us letters/bills since September 2009, but we haven't received any until just recently and it was only one. The collection agency told me what address they sent them to and it's the correct address. I can't figure out where all these letters went to. No other mail has gone missing.

So anyway, I told the collection agency that my husband would be willing to pay this debt in full if they remove it from the credit reporting agencies, but they declined. They also want me to pay over the phone via credit card. I have determined that they are legitimate, the hospital confirmed this.

I'm wondering if I should just pay this debt and be done with it. Or, should I send them a letter asking them to remove this from the credit reports in exchange for full payment? Should I refuse to pay unless they remove it? This isn't fair because my husband never received any notification that he even owed anything. The hospital says they can't help us. Maybe I should speak to a supervisor?

Does anyone have any advice? I have recorded all the phone calls I have made with them, just to be safe.

Also, we received this letter within 5 days of my husband answering one of the collection agencies calls. We received the letter about 24-27 days ago. Is this a problem? Does he have to do anything within a certain amount of time?

[chane]

I wouldn't pay it until they agree to remove it in writing. I highly doubt they are going to sue you over it. But, even if they do, no big deal. Show up to court and fight it or settle it out of court at that time.

So, I would tell them you are done talking to them until you get a letter that agrees to remove it from your credit report. Let them know that you understand that it is 100% VOLUNTARY that they report it in the first place. They could be cool and remove it for you, but they are choosing to be DICKS...so tell them you refuse to pay until they remove it. Ask them to stop calling until then.

You could also try the 1-2 punch. It's up to you.

Explanation of the 1 2 Punch

[lily7]

One of my concerns is if they sue me. I just read an article about someone who didn't pay a collection agency the amount they owed (less than $100) and they lost their house because of it. The collection agency (or whoever) sued them and the fines were thousands of dollars. So that's why I'm concerned and not sure what to do.

So, is it ok to dispute the charge even if I know I owe it? I think I may be missing something here.

[chane]

That doesn't happen very often. That person was either very unlucky or very stupid. If a CA sues you, you can settle out of court. You don't have to fight it and/or pay any court fees. CAs are probably the ones that put those articles out. They want people to be scared of them. Their best tactic is fear. Without it, they are worthless.

Yes, it is your legal right to dispute any information on your credit report. Everything on your credit report is reported voluntarily by your creditors. The CRAs are privately owned companies (who sell YOUR information for profit without your permission). They are not government agencies like they would like you to believe. It is their obligation by law (under the FCRA) to investigate anything that you dispute. The burden of proof is on them.

If they are reporting damaging information on my credit report that may cause me to pay $1000's more in interest some day or deny me credit...then I'll be damned if I'm not going to dispute the information and at least make them prove it. The law says that if they can't prove it in 30 days, then they have to remove it. That is my mindset. I think like the plaintiff not the defendant and it has served me very well.