Expert: Michael Brotherton - 7/1/2007

Question
Hello Mr. Brotherton,

I live in Nebraska

I owe a debt to a physician's clinic and an emergency room the physician is affiliated with. I was told to go to the E.R. by the Physician's nurse. I made payment arrangements with the clinic believing that their clinic and the E.R. were all one account, ie; since I was making payments for the clinic visit a portion the payments I made would be applied to the E.R. as well.......it's all one health system, Methodist Physicians. I made the payments as agreed. I could only afford to send them $28.00 per month and so I diligently  made the payments. Then I received a notice from the E.R. that if I didn't start paying *them* they'd turn me over for collections. I called and told them I thought my $28.00 had been going to pay them off as well as the clinic, but apparently not. I honestly can only afford a $28.00 payment, so I told them that I will pay the clinic $14.00 per month and the E.R. $14.00 per month, and have been doing so for the last 3 months - they cashed the checks I sent.

They have now added my Husband's name onto my account (I know legally they can do that)but he called them last week and they said that we have until the end of July to pay the accounts off entirely or they will turn both of us over for collection.

My question is, can they turn us over to a collection agency, or worse, even though I've been sending them payments and they have accepted the payments?

Thanks for your time
Melanie

Answer
Yes, they can still turn you over to a collection agency but you still cant pay more than you can pay. In most cases they will not take any serious action against you as long as you make an effort. However the old wives tale about a creditor not being able to sue you if you pay them a few bucks is bogus. They can do what they need to within the limits of the law to collect their money.

Write them a letter and put your proposal in writing. Make sure you get any payment plan in writing. Protect yourself. If they don't agree with your proposal, pay it anyway. Keep copies of all correspondence.