Expert: Ray A Miller - 1/6/2011

Question
Hi. I had arranged a six month payment plan with a radiology company. They are only available during regular business hours, which are terribly inconvenient to me, so I was routinely approximately 3 weeks late making each payment. I finally decided it was too much hassle and the day I decided to just pay off the remaining balance the company informed me it had sent my bill to collections. I told them I knew I was a little less than three weeks late, but that since I had been making a payment each month, I was confused and worried for my credit report. I asked them why they had decided to send my bill to collections and they told me they generally only allow 3 months for complete payment. I was upset that no one had ever informed me of that when I made the payment arrangements. I want to pay off the bill, but I am trying to keep my credit clear because we are in the process of buying a home, so that is my utmost concern. Is it possible the radiology company reported the debt to my credit report, and would that be legal since I was not even a month late??? I did have an agreement in writing, but had made mistakenly thought my first payment was due October, when it had been due September. I was juggling so many medical bills in addition to our regular bills and credit card bills, and simply got turned around. Can you help me make certain this will not be on my credit report somehow?? Thank You very much for your time and attention.

Answer
Yes they can send your account to a collection agency at 3 weeks late.  The thing for you to do now is to call the collection agency and make sure this has not been placed on your credit history.  If it has not, pay the bill and it is all over with.  If it has, negotiate with the collection agency that if payment is made, they will remove it.  Get this information in writing.  I hope you have found this helpful.