Why Chat Question on Settling Medical Debt

[tyabeau2]

I have a question on wording a settlement offer for a hospital on a medical debt. I have a settlement letter that will serve as an agreement for a regular cc debt, but I don't know if I should use the same letter or add extra wording to include HIPAA rights or so on.

 

Backstory, which you will find on my other posts: Hospital original charge $3900, been paying for over 2 years now down to $3500, sent to collections.

 

I have spoken with the manager of the billing department of the hospital and we reached a settlement lower than original amount and they have agreed to retract the account from collections once the payment has been made (that took time to convince because he wanted to just have the collection updated as paid "claiming" once it's sent it cannot be retracted, but everyone on this board knows it can). I will fax over the settlement letters for him to sign and I will not send the cashiers check until the letter is signed and returned to me. I have copied what the letter will state. I have not include important information such as name of hospital, blah, blah, blah.

 

Please help me in the correct way to word this so I can get it sent to him as soon as possible. Thank you!

 

Yes WhyChat, I have gone through all your steps and I'm on the step to "insert a" and make full payment, but I can't afford full payment but have saved up enough to settle.

 

The Letter I Will Send:

 

Dear Creditor,

This letter is to confirm the settlement offer made between myself and your customer service representative ___________________ phone number _______________ made on ________, 20__.

I really appreciate the fact that your company is willing to work with me on this matter; I wanted to make an honest attempt to settle this debt.

 

The amount your customer service representative and I agreed to settle this debt in full is $___________. In addition, you will retract this debt from Collection Agency, any references on my credit reports (TransUnion, Experian or Equifax) relating to this debt as a collection or as late payment, paid collection or charge off regarding this account are removed from my credit file.

If these terms are acceptable to your company, please sign the attached letter of agreement and return a copy to me. Upon receipt of this signed acknowledged agreement, I will express you a cashier’s check in the amount stated above.

Yours truly,

 

Your name

Enclosed attachments.

 

 

 

Agreement to settle a debt

 

This contract shall serve to spell out the terms of a settlement offer between <insert your name>, hereafter referred to as CONSUMER and <insert credit card company’s name>, hereafter referred to as CREDITOR on acct number _______________________.

 

Upon receipt of a certified check from the CONSUMER for $______________, the creditor agrees that this balanced owed on acct number _______________ is zero and that no further payment or fees are due from the CONSUMER at any time in the future.

 

In addition, the creditor agrees to remove any references to late payment or charge off regarding this account from CONSUMER’s credit file, and will instruct any collection agency assigned by CREDITOR or its assignees to collect this alleged debt to do the same.

 

This contract supersedes all other contract between the debtor and creditor.

 

_______________________________________________ Date:___________

CONSUMER

 

I attest that I am authorized to make decisions regarding the making and acceptance of settlement offers for outstanding credit card for the <insert credit card company’s name> company.

 

Read, Approved and Accepted by:____________________ Date:__________

CREDITOR

Edited August 28, 2014 by tyabeau2

[Why Chat]

If you have opted out, deleted old addresses

http://www.whychat.5u.com/GUIDEBOOK.html

http://www.whychat.5u.com/GUIDE%20HIPAA%20PROGRAM.html

 

and sent the initial dispute letters to the CRAs

http://whychat.5u.com/hipaadisp.html

and had a response directly from the reporting CA as a result of your dispute letter that documents a CURRENT business relationship between the reporting CA and the OC, then you can pay the OC with the HIPAA letter insert "a" using the alternate language here:

http://whychat.5u.com/hipltr.html

 

Enclosed please find my remittance of ($___) for payment in full of this account. This payment in full is for services as per the attached agreement with your billing office.

 

Please note, my remittance is payable ONLY to (hc provider) and may not be signed over or transferred to any third party collection agency, as this would constitute an additional violation of HIPAA, State Privacy Act rules and the Omnibus Final Rules. . Copies of this correspondence and a copy of the remittance check may be used for any further actions with State or Federal agencies

 

If you do anything else, you risk having your reports show the account as a "paid" collection settled for less than the original amount, which since it would be 2 years newer, but still derogatory will REDUCE your scores.

 

Also, there is a possibility that the reporting CA is NOT the original assigned CA and your payment to the OC will have NO effect on the entry.

[tyabeau2]

Thank you why chat!

 

Yes I have followed all steps and am now down to the insert a and get this off my cr. The hospital agreed to settle the account for a lower amount as payment in full and I didn't know how to word the letter.