Is this debt validation acceptable?

[Hal Jordan]

Ok,

I have a collection for an old MRI I had back in 08/2006. The bill was about $1200. My insurance paid $650 and I paid $350 (which I thought took care of it).

Well, when I started repairing my credit this was one of the items that was on there. So I sent the Collection agency that has this (Kansas Counselours) a debt validation letter. I asked for their proof authority to collect this debt to prove that they are in fact able to take payment on behalf of the MRI company.

I asked for the item specificly bearing my signature such as a contract or a statement of which I agreed to pay for services.

and Lastley I asked for a complete account history as to how the amount of the alleged debt was arrived at, including original charges, payment history, any charges added for collection activity, date account was opened, date of last payment, and any addresses associated with this alleged debt.

They sent me a photo copy of piece of paper with the date of service, Physician's name along with my name, dob and ssn and it says this..

Hal Jordan
Lower extremetie MRI $1204
Blue Cross Blue shield (-$646)
patient (-$350)
Remainder $208
Bad Debt write off $208
______________
Total = $0

Then hand written on the paper it says "Please pay $208 immediately to pay off account"

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Does this validate it? Do they have to provide proof of their legal ability to collect this debt? Do they have to provide me proof of the "agreement" to pay signed at the hospital?


It is almost out of the Statute of Limitations. It will be outside of SOL on 09/2011 (5 years in kansas).

What would be the best course of action here?

[Hal Jordan]

Did some digging and found a follow up letter using HIPAA violation. The site I found had some info stating that what they sent me isn't enough to validate debt.

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This letter is being sent to you in response to your attached letter.

On 03/ /2011 You received my letter requesting validation of this debt. You responded with a computerized printout of a medical accounting. This is not sufficient. FDCPA Section 809. Validation of debts [15 USC 1692g] requires that you provide proof that this debt is actually owed to you (COLLECTIONA AGENCY) and not to the original creditor and that you have legal authority and right to collect payment for this debt.

This is not a refusal to pay, but a notice that your claim is once again being disputed.
Under the Fair Debt Collections Practices Act (FDCPA), I have the right to request validation of the debt you say I owe you.

I am again requesting proof that I am indeed the party you are asking to pay this debt, and that there is in fact some contractual obligation which is binding on me to pay this debt. Specifically a document bearing my signature agreeing to pay this alleged debt

Please attach copies of:

1: Agreement with your client that grants you the authority to collect on this alleged debt, or proof of acquisition by purchase or assignment. and authorization under subtitle D of the ARRA ,SEC. 13401. APPLICATION OF SECURITY PROVISIONS AND PENALTIES TO BUSINESS ASSOCIATES OF COVERED ENTITIES;and SEC. 13407(1) BREACH OF SECURITY.—The term ‘‘breach of security’’ means, with respect to unsecured PHR identifiable health information of an individual in a personal health record, acquisition of such information without the authorization of the individual.

Please note that enforcement of penalties against you is covered under the penalty rules of the HITECH Act as issued 11/30/2009 and the penalty rules of the FCRA and FACTA including FACT Act changes final rules effective July 1, 2010.

2: An Agreement that bears the signature of the alleged debtor wherein he or she agreed to pay the creditor AND as this is a medical account a copy of any HIPAA authorization.

Please also be advised that this letter is not only a formal dispute, but a request that you cease and desist any and all collection activities, including reporting of; or verifying of this account on my credit reports.

I require compliance with the terms and conditions of this letter within 30 days. or a complete withdrawal, in writing, of any claim.

In the event of noncompliance, I reserve the right to file charges and/or complaints with the OCR on your HIPAA violations and appropriate County, State & Federal authorities ,the BBB and for violations of the FDCPA, FCRA, and Federal and State statutes on fraudulent extortion and illegal collection activities on any account that may be time-barred as well as Kansas medical privacy rules.

I also hereby reserve my right to take private civil action against you to recover damages.

Sincerely,

[Lian]

There is only one party that can answer your question with authority, and that is a federal judge in your jurisdiction.

What is and is not adequate verification/validation of a DV request is not defined with ANY specificity in FDCPA 809(b). Accordingly, it has been left to the courts to determine, on a case-by-case basis, adequacy of debt verification. Some courts set low standards, and others are much higher.

Some courts would consider what they sent you as adequate, as it itemizes the creditor, and what was not paid to them. Many courts consider items that require documentation from OC account records as being unreasonable, since debt collectors don't retain OC account records in their normal business practices. It is a legal and jurisdictional mess.