John asked in Business & FinanceCredit · 8 years ago

Collection agency not reporting debt to Credit Agency?

A collection agency has been hounding me for the past 6 months to repay a 2000 dollar hospital bill. However, I just checked my credit report and the debt is not on there. Does that mean that the collection agency has no way to collect on the debt?

Update:

I checked all three credit reports and they all are clean. The bill was generated a year ago so I don't think its a zombie debt. What is the best way to negotiate down from 2000 with this collection agency?

11 Answers

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  • Ted
    Lv 7
    8 years ago
    Best Answer

    There are 3 bureaus. The collector may not be a subscriber to all of them.

    There is no requirement that they deal with a credit bureau. They can just sue you and add the costs to the debt.

  • 3 years ago

    Report Collection Agency

  • Anonymous
    3 years ago

    For Finance and credit solutions I always recommend this website where you can find all the solutions. http://INSURANCEANDFINANCETIPS.INFO/index.html?src...

    RE :Collection agency not reporting debt to Credit Agency?

    A collection agency has been hounding me for the past 6 months to repay a 2000 dollar hospital bill. However, I just checked my credit report and the debt is not on there. Does that mean that the collection agency has no way to collect on the debt?

    Update: I checked all three credit reports and they all are clean. The bill was generated a year ago so I don't think its a zombie debt. What is the best way to negotiate down from 2000 with this collection agency?

    Follow 8 answers

    Source(s): For Finance and credit solutions I always recommend this website where you can find all the solutions. http://INSURANCEANDFINANCETIPS.INFO/index.html?src...
  • 8 years ago

    There is no requirement for collection agencies to report a debt to credit bureaus. Whether a debt shows on your credit report has NO bearing on whether collectors can try to collect the debt.

    Since this is a fairly recent debt and you know the bill is yours, you should try to negotiate a settlement and do so BEFORE the collection agency reports the debt to the credit bureaus. I suggest you start with a lump sum offer of half and see what they counteroffer. Anything less than 70% would actually be a good deal. Forget payment plans. Better to save up for a lump sum offer.

    Get any settlement agreement in writing before you pay and do not give the collector direct access to your bank account.

    Source(s): BD
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  • 8 years ago

    If you know it's a bill that you owe then it obviously is legit. The way collection agencies work is they buy the debt from the hospitals for pennies on the dollar. Keep in mind they probably paid like $20 to obtain your bill. If you don't pay the bill it will eventually get sent back to the hospital and all they do is send it off to another collection agency, which could report it.

    What you should do is call the hospital and set up a payment arrangement with them. When the collection agency gets fed up with you they'll send it back. You can still negotiate a price with the hospital and this way you don't ever have to worry about another agency getting it and reporting it. Plus I would hope that it will give you the peace of mind knowing that your money didn't go to some scum bag debt collector.

  • 8 years ago

    Personally, if I was being contacted by a collection agency, and they weren't reporting it on my credit report, I'd want to get it cleared up before they did report it.

    Whether or not they report it to the credit bureaus has no bearing as to whether or not you still owe the debt, or whether or not they have a right to collect it.

    So, with that said, the first question becomes...Do you have a debt from a hospital bill? If so, did the hospital sell or assign it to a collection agency? A call to the hospital should be able to give you this information.

    If the agency that is calling you is the legitimate owner (or collector) for the debt, then you should work on settling the debt with them.

    Another poster said that if you pay them it can reset the statute of limitations. That's correct, if you pay them, it does extend the time they have to bring a suit against you. However, if you settle it (or pay it in full), they will have no right (or reason) to bring a suit against you.

    It sounds as if the other poster was implying that if you pay them anything, the debt could end up on your credit report for a longer time. That's simply not true. The law is clear in stating that negative information can only stay on your report for 7 years from the date it was charged off (or 7 years plus 180 days from the date it went delinquent). Paying something on the debt doesn't change the date it went delinquent, so it won't affect how long the item is on your report.

    So, with all of that said, if the debt is legitmately yours for services rendered by a hospital, you should work on getting it settled with the collector, and get the terms of the settlement in writing from them BEFORE you send them any payment.

  • 8 years ago

    Yes...Sounds like ZOMBIE DEBT (over 7 years old) DO NOT pay the Collection agency anything it will reset the Statute and you will be back on the HOOK! Dispute the Debt with the Collector and DEMAND a verification of the DEBT including Invoicing from the original Hospital!

    Best Of LUCK!

    Source(s): Experience
  • 8 years ago

    They could be one of those collection agencies that buy the debt. So that would mean they have no right to report you to a Credit Agency.

  • Anonymous
    8 years ago

    ABSOLUTELY does not mean that at all. They can take you to court, get a Judgment, garnish wages and take you bank accounts. The reporting period to the credit bureaus is 7.5 years from the date of default.

    The Statute of Limitations for COLLECTIONS is what your state allows by law here is a chart just find your state.

    http://www.cardreport.com/laws/statute-of-limitati...

  • 3 years ago

    Maybe that's correct

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