I had a medical bill turned over to the local CA here, it is mine so I do owe it, my question is how the interest on it works.

They say they charge 12 percent per ammu?

It was turned over on 12-02-08 for 410.78 and interest so far is $38.10

I am not understand how they are calcuating this up.

TIA

Can they even *do* that?

When you say "it is mine, I do owe it" what do you mean? Do you know that the OC will receive some part of the payment from the CA, or does the amount & OC ring bells and you know you owed the OC $410.78 at some point?

I have talked with the OC and what was turned over was correct and its a local CA here in town that only does collection in are area, how I know this is my boss has used them (I know I know dont hate me for it I am not the one that does it) so I do know that the OC gets the money because we have gotton payments from them. We get 60 percent the CA keeps 40 percent.

First, a quick google turned this up on charging interest (you should check with your state's laws):

A collection agency can add interest to your bill, however, the terms and rates depend on the circumstances of your particular account. The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) must be expressly authorized by the agreement creating the debt or as permitted by law. An attorney should be able to tell you how much the agency can legally charge you. You are also entitled to an explanation from the collection agency as to how much they are charging you and why. You should ask them by letter to explain to you in writing.

Is it reporting to the CRA's? And what are the associated dates?

Not sure if its reporting, I do know that this CA does report to the CRA's.

for the dates not sure what you mean, but it was turned over on 12-02-08 from the OC to the CA, my last payment to the OC was 09-08. First visit with them was 03-08

if it helps I am in Idaho.

I'd go ahead and order copies of your reports - CA's aren't exactly sluggish about reporting, so it might be there already. And the legality of charging interest aside (here's your Idaho link: http://finance.idaho.gov/LawsAndStatutes.aspx for research), if this IS on your reports, you'll probably want to know and do something about it sooner rather than later.

Well I am going to have to pay off the medical bill in full, its from orthopedics and my dd broke her arm again and they are the only ortho's in this area and before they will see her I have to pay it off. the OC says once they have proof I paid the CA in full they will see her. (she has insurnace now so at least her visits are covered)

I did fax the CA because the OC says they havent received any money and so far $125.22 has been paid to them according to the CA's records I requested from them. I also asked to explain the interest to me.

Did you pay them that $125.22?

If you're planning on paying the (possible remainder?) anyway, I think the way to go is pay the OC using WhyChat's hipaa letter, insert A. http://whychat.5u.com/hipltr.html

Always remember, having a paid collection is just as ugly on your report as leaving it unpaid.

I have a few other medical bills from this CA, they got a judgement on them, but I worked out a agreement I would pay them $100 a month and they wont garnish me or put the judgement on my CRA's (yes I have it in writing) I asked for an updated report from them this week with my payments I am keeping track off the judgement should almost be paid off, they sent the copy.

I knew that this medical bill was on there plus another one no judgement on them. When I was looking over them I noticed that they had sent $125.22 so far to the OC I am talking about here. It looks like they are applying my $100 dollar payments some to this bill some to that one etc.

I did ask the OC if I could pay them in full but they said if they do that they will loose the contract they have with the CA and then they can be sued by the CA for taking payment from me after they sent it to them.

I will check out the link you posted.

**Just my note: First CA I got nixed by using the Hipaa letter/ insert A tried to tell me the exact same thing. I didn't really care - sounds like a bad contract if it even exists and is just not my problem. My right to medical privacy, on the other hand? Yeah, that's MY problem. The CA deleted within three days of the OC receiving my payment.

Okay I head from them on the interest they say they charge

12 percent per year or 1 percent per month.


so

a medical bill gets turned over on 12-02-08

$410.78 is the bill

for far as of last week interest from the CA is $38.10

does that add up right?

THEN

I was asking about the payments made to this account so far because I want to get this one paid off right away.

the bill and the interest (if right) together are

$448.88

so far I have paid $175.22

which should leave a balance of $273.66

on the fax she sent me it says

This medical dr has receieved $175.22 leaving a balance of $449.36

Looks like I need to talk to them again.

I did get in writing from the CA they charge 12 percent per year or 1 percent per month.

so collection was turned over on 12-02-08 for $410.78

Interest as of April 09 was $38.10

That still doesnt seem right.

I am planning on paying this medical bill in full this week, I have checked with the OC and the do show they have received the $175.22 so far from the CA.

I am one for paying the medical bill I owe $410.78 but just want to know if I should fight the interest part?

I did ask the OC if they would like me to come pay them directly (afterall then 40 percent isnt kept from them) they said legally they cant take it because this CA will sue them.

Which I know they will come after the OC if this happens, once quite a while ago, we turned someone over to this CA (well not me but my office dont hate me please) the patient called and asked if she could pay us and let the CA know we are taking it back. We took the payment let the CA know, they came after my doctor for their 40 percent.

I have not responded to you before as you have negated any possible use of the HIPAA letter program by paying the CA.

You have "self validated" the CA's right to collect on this account by paying them, so you are stuck with the interest charges and fees.

Even after you pay them what they want, you will likely be left with a "paid" collection on your reports.

This CA has 7 medicals bills on me, 4 they took me to court on, which I did ask for validation and it was shown the OC;s had turned them over to this CA, they where willing (which I have in writing) to do a stipulated judgement, which means that if I pay them every month they wont report it to my CRA's.

When I asked for an updated report, I figured the ones they took me to court on would be paid off or just about paid off, but they have been applying my payments to the other 3, they still apply some to the judgement ones but they spread the payments out.

The one I want to pay off, I know the OC turned over to them so that CA can collect.

This is a local CA only does collections in our town and they love to go to court. If you can believe they call themselves Credit Bureau?

I will have no choice but to pay it I guess, my dd needs to get in to this doctor again (she has a broken arm and he is the only ortho in this town) they said no problem seeing me again, esp now that insurance will cover it, but I have to pay the old debt before dd can see the dr.

Sorry if I screwed up WhyChat, I know you are a very helpful person.

Sorry on my last post
MWM2006, What you are describing:
but they have been applying my payments to the other 3, they still apply some to the judgement ones but they spread the payments out.
This can be addressed if you start writing a check (or money order) that says Apply to this account only on the back of the check.

You also need to read up on your state laws because what you are describing above is against my state's law (IL)
The reason why the CA is messing with your payments:
1. Your are letting
2. Once they have Judgment by law they can add 9% each year (this my state's law)
they longer it takes you to pay off the Judgment the more money CA makes in interest. If you can believe they call themselves Credit Bureau?
Pyran has given you advice on this, I have have offered to write this place and ask for a free copy of my CR I am sure they are others on CB would also be willing to do this. Some of us just love to mess with CA.
Although you have disqualified yourself from the HIPPA process on this one, if you find that this CA is indeed breaking your state laws than filing a complaint with your AGO, may help get the CA and the Judgment gone for good but you need to read up on your state laws before that can be determined.