Debt collection is a huge business that is continuing to grow each year. Many creditors, including doctors and hospitals, are now selling accounts to collection agencies as soon as six months after the first bill has been sent. As a result, more and more seniors are being contacted by debt collectors.
Here is some helpful advice:
When an incorrect bill is received
If a bill seems incorrect, call the company right away to have it fixed. Ignoring the bill and not paying it will only result in possible collection notices. The longer the bill is wrong, the harder it is to fix. Pay special attention to medical bills and review them to make sure that Medicare and any supplemental insurance have made payments. Often the bills are not submitted to the correct insurance company, which results in unpaid bills.
When a collection notice is received
Check to make sure that the debt listed on the collection notice is legitimate. Also check that the statute of limitations has not passed. Sometimes debt collection companies will send notices for old debt. If the debtor makes any kind of payment or acknowledges the debt, then the clock will start over and the company will pursue collection.
If the debt is a medical bill that should have been paid by insurance and it is within a year of the date of service, the bill can still be submitted to insurance for payment.
Take care in deciding what to say or write to a debt collector. Their sole purpose is to get a payment, and information will be used for that purpose. Don’t say that you will pay if you have no intention of doing so. Also, don’t give out any more contact or personal information than the collector has already obtained.
Watch out for fraudulent debt collection calls
Never provide your credit card, bank account number, debit card, social security number or Medicare number to anyone over the telephone.
There are many fraudulent phone scams that use scare tactics to extort money from innocent victims. A sure tip off that you’re being targeted is if the callers voice is an automated machine or threatens you with arrest if the “debt” is not paid immediately.
If you need help sorting out bills and budgeting payments, contact Jacky Kennedy Sisson, Surrey’s Personal Finance Manager at 610-647-9840.
