Can a collection agency sue when the debtor has already paid?
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Can a collection agency sue when the debtor has already paid?
When attempting to pay a medical bill, they said the bill had been sent to collections. I told them I would pay the $86, but I was not paying the collection fees. I spoke with the collection agency and told them that I paid the bill in full and I no longer owed the bill and was not paying their fee. I have a $0 balance with the medical center. The rep at the CA kept telling me that when I signed my initial bill it said in the disclaimer that I would pay for services rendered plus any and all collection fees. Can the CA come after me for the fee? I have not received a letter from the CA.
Asked on January 24, 2011 under Bankruptcy Law, Indiana
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
You probably paid the bill a little too late. But no matter. Here is the thing: what are the real collection fees here? Generally speaking there are two ways that collection agencies do business: they buy the debt from the company out right for a small amount in the hopes of recouping that money plus some, or they are paid on a percentage basis based on the amount that they get back (usually a third of the bill). If they have not yet sued you then there are no court costs involved. So ask them when they call to validate the debt: show you that it is outstanding, that they have a right to bring the action on behalf of the medical provider, a copy of the original agreement that they are referring to and ask them for their fees - detailed - this far. If they do not give it to you report them. Then wait and see. Good luck.
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