Expert: Ontrack Financial Group llc - 10/5/2007

Question
I have some old medical bills that were turned over to a collections company UCB by the hospital because I was unable to make the payments for three months. I have been contacted by the company and they told me that they wanted me to pay $150.00 every two weeks (automatically deducted out of my bank account) in order to keep it off of my credit report. I told them that I could only afford to pay 75.00 every two weeks and that I was willing to set up an automatic payment for that amount. They wanted me to provide them with my tax return information from last year and a list of my expenses to see if I qualified for "Destitution"? I told them I didn't feel comfortable with providing them with my personal financial information, and then repeated that I would be willing to set up a payment for 75 every two weeks because this was all I could afford. The lady literally came off her hinges and started yelling at me and talking so quickly that I couldn't get two words in or remember much of what she said. From what I can remember she said that their company's procedures followed the FDCP and followed the law and that according to law a $75 bi-weekly payment on a balance of 10,000 was unacceptable. She then said that since I was unwilling to pay 150 every two weeks she would have to send a letter to the hospital stating that they were unable to get cooperation from me. I told her that I was willing to cooperate but I just couldn't afford what they wanted and that I would pay them 75 every two weeks. I also told her that I knew that if they decided to take me to court which she replied "oh we will" that a judge would see that I was willing to pay. I know this was a dumb thing to say and I probably just made her angry. She then barked their address at me and told me to mail in my payments, then hung up on me.

I am going to send in my $75 payments faithfully starting today. My question is, I've been reading up on the FDCPA and it is hard to understand. Did she make any threats in what she said to me that could fall under an FDCPA violation? When she sends the letter to the hospital stating that I was unwilling to cooperate (because I can't pay 150) isn't she lying since I told her I would pay 75? If they do end up suing me, what is the possibility of a judge ruling in their favor even if I mail them a payment every two weeks? I know that they have a right to sue for the full amount at any time they wish, but if you are making an effort doesn't that count?

Answer
Franccesca,

Yes this person violated the law one she started to yell.  She doesn't have the capacity to send a letter to the hospital. That was a lie, (another violation).  True the hospital could request suit on this account, however I doubt they will.  The account is in a "collectors Que" and has anywhere from 500 to 1000 accounts to call.  All collectors make commmission, the higher the payments the better possibility of a commission check.  

Send a certified letter requesting them to stop contacting you.  When mailing in your payments, make sure you send a Money order.

Good Luck

Eddie