Sent a (Medical) collections settlement offer

[Tom_Mi]

Hi All,
Between filing and discharge of my CH7, my wife went to the hospital for a week and we were blessed with a 3800 debt. It went to collections, because the hosp wouldn't finance it and I couldn't get a loan pre-discharge (or post!)

I just mailed off a letter to settle it at 40%, approx 1500.

I got the letter from the internet (professional looking) and added a 2nd page of reasons why I think I don't deserve to pay in full - unfairly overcharged, etc.

What do you think they'll come back with? Their website says they are a 'contingency fee' collector, so I'm thinking they don't have much leverage to discount the debt.

[Tom_Mi]

Update...
The letter gave them 2 weeks to respond either way, and it's been 2.5 weeks. I realize now I didn't send it registered, did they likely toss the letter in the trash?

I'm hesitant to call them because everything I've seen says to keep this negotiation in writing. Should I just resend it registered?

[frogger]

Whether they are willing to compromise can depend on if they now own the account or not. It the agency is just working the account for the hospital, they can not accept offers without the consent of the original debtor.

If they had an assignment of the debt, or if they purchased the debt, then they are in a position to make or accept an offer.

Why did you make them an offer in the first place? I would have waited on them to make an offer. The collections road is a very long road to travel. You're not at the junction of making any offers yet.

[Tom_Mi]

Thought I'd update this thread, since I got my response yesterday in the mail.
The outcome was similar to Frogger's prediction.

A couple details about the collection/letter/agency:
-The agency did NOT own it, just a contractor.
-The debt was about 4,000 from an inpatient mental health stay the ins. co. paid at 60/40 instead of 80/20. We didn't know mental health was billed differently, and my appeal was about the "mental health parity act"..but I'm sure they have loopholes. This was due to a problem my wife had as a result of our BK filing (and therefore AFTER filing).

So, after a couple months (instead of 2 weeks demanded in my letter), the hospital simply responded with: It's your insurance company's fault. Call them...oh, and enclosed is a payment envelope.

Of course I don't owe BCBS any $, so they'll just blow me off too.


I suppose I'll just sit on it, but the collection acct is pulling 100points from my wife's credit report.