ITT: Advice needed on a weird medical bill/statement

[Eve Hill]

This month's bill/statement from one of my medical providers has something new on it that's got me going WTF?! They acknowledged only 1/3 of my payment and listed the rest of it as "Bad Credit Write Off". WTF? I haven't seen anything like this before.

(A bit of history: I incurred a big medical bill 5 years ago. I had called the business office and worked out a payment plan. I've been faithfully sending a check every month since day 1. Really glad now that I've kept bank statements & receipts of everything going back 7 years!)

Has anyone else had this experience? Is this even legal?
I've called the business office. Got their voice mail so I left a message. They haven't called back yet. It's been 2 days. Tonight, I'm looking up #s for the Better Business Bureau, lawyers, etc. but I'm not sure who I should be calling about this. I don't want my credit affected by their (?) mistake (?)....
Any advice?

[Mesozoic Mister Nigel]

I am pretty sure that's illegal! They can charge interest, but that can't simply refuse to acknowledge part of your payment.

[Anna Mae Bollocks]

Call the Attorney General"s Office for your state. They should have a consumer protection line or something of that nature.
I've had very good results with the AG's office in both TX and MA.
The Better Business Bureau isn't what it's cracked up to be. I've been told that approved businesses simply get listed with them and they can lose their listing, but the BBB doesn't actually do anything. Haven't verified this, but I've had plenty of bosses laugh after an irate customer came in and threatened them with the BBB.
Go with the AG.

[navkat]

I don't think they're allowed to charge interest on medical bills.

[Wyldkat]

I have the same issue on the bill from the car accident last August.  I'm trying to figure out what's going on.  "Bad Credit" anything doesn't sound good to me.  I have perfect credit and don't want it getting messed up somehow.

[LMNO]

The company has decided to treat the unpaid portion as a "write off", which means they can claim it as a loss on their taxes.  However, you are still obligated to pay it.  It will affect your credit rating, and could be sold to an outside collections company. In fact, that may be what happened.  I'm not sure how it works in your state, but they should have contacted you, or there should be something in your agreement about it.

[maphdet]

They may also send you a 1099-C if they are "writing off" part the balance. This means you will be responsible for the taxable portion of the written off amount.
Check with them for sure and also send them a written letter of dispute for the portion that they are considering a write off. Sending along a copy of the receipt for your payments that they are claiming as a write off.

[Mesozoic Mister Nigel]

The company has decided to treat the unpaid portion as a "write off", which means they can claim it as a loss on their taxes.  However, you are still obligated to pay it.  It will affect your credit rating, and could be sold to an outside collections company. In fact, that may be what happened.  I'm not sure how it works in your state, but they should have contacted you, or there should be something in your agreement about it.

From what she said, it sounds like they failed to apply part her payment to the balance, which is a different situation.

They acknowledged only 1/3 of my payment and listed the rest of it as "Bad Credit Write Off".

[Eve Hill]

The company has decided to treat the unpaid portion as a "write off", which means they can claim it as a loss on their taxes.  However, you are still obligated to pay it.  It will affect your credit rating, and could be sold to an outside collections company. In fact, that may be what happened.  I'm not sure how it works in your state, but they should have contacted you, or there should be something in your agreement about it.

From what she said, it sounds like they failed to apply part her payment to the balance, which is a different situation.

They acknowledged only 1/3 of my payment and listed the rest of it as "Bad Credit Write Off".

Yes, that's what they did. That's what really threw me off. I almost wonder if they're listing it that way so they can later claim I didn't hold up my end of the agreement. (?)

Call the Attorney General"s Office for your state. They should have a consumer protection line or something of that nature.
I've had very good results with the AG's office in both TX and MA.
The Better Business Bureau isn't what it's cracked up to be. I've been told that approved businesses simply get listed with them and they can lose their listing, but the BBB doesn't actually do anything. Haven't verified this, but I've had plenty of bosses laugh after an irate customer came in and threatened them with the BBB.
Go with the AG.

*making a note* Thank you!

I don't think they're allowed to charge interest on medical bills.

I'll add this to my note for when I call the Attorney General's Office. If they can't charge interest, it's possible I have a refund coming. 5 years of interest....*trying not to get excited yet*

[Eve Hill]

Called the AG & got the Consumer Protection #. They must be really busy today.  Left a message. Hoping I'll hear back from them today. If not, I'll call again tomorrow.

[LMNO]

Hmm.  In that case, I can see this scenario:

They have written off the remainder of the debt, which means the non-applied 2/3 would be treated as an overpayment, and they may mail you a check for that amount in a week or so.

[Eve Hill]

Hmm.  In that case, I can see this scenario:

They have written off the remainder of the debt, which means the non-applied 2/3 would be treated as an overpayment, and they may mail you a check for that amount in a week or so.

That would be great to get a check back from them!

I wish their business office would hurry up and return my calls. Day 3 and they're still silent. Tried calling them again this morning & got punted to voice mail right away. That seems really off to me. They're not a big outfit like Mayo, but still...someone's usually at the phones during business hours.

[The Good Reverend Roger]

Sounds like someone's playing monkeyfuck with their taxes.

[LMNO]

It also means that they may have sold your debt to a collection agency.  Which sucks.

[The Good Reverend Roger]

It also means that they may have sold your debt to a collection agency.  Which sucks.

Which means she has 30 days from the first contact with said agency to dispute the claim.