Should You Pay a Medical Bill in Collections?

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Should You Pay a Medical Bill in Collections?

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Throughout the United States, it is a common issue that individuals will have serious medical debt. There are many reasons why someone may not be able to pay their past due accounts for medical debt, and this unpaid bill can have a severe impact on their credit report.

When individuals owe a large sum of money after undergoing a medical procedure, especially without insurance to help cover the expense, that pressure to settle the unpaid debts can be very difficult to handle. If a debt collector purchases the debt from the medical company, the medical collections agency will attempt to collect a debt or form a payment plan. Unfortunately, many people in St. Louis, MO, and throughout the entire country cannot afford to give up their valuable resources to debt collectors.

A frequent question that individuals with unpaid medical debt have is whether or not they should pay the collection agencies who have purchased the debt. Many factors play a part in the decision-making process for these individuals. Before answering the question about paying the debt collection agency that owns their unpaid bill, it is important to understand what happens when these bills are sold to debt collections services.

What Happens When Medical Bills Go to a Debt Collection Agency?

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When an individual has an unpaid debt, the original provider of the services, who is now attempting to collect the money has the option to report the delinquency to credit reporting agencies or sell the debt and allow a collection agency to handle the issue.

Unpaid medical bills can and will show up on your credit score, but the primary factor to consider when figuring out how detrimental it will be to your score is who reported the delinquency. If the medical collections agency tasked with collecting debt reported it, you have one hit on your credit rating. However, if the original creditor reported it before sending it to a collection agency, you will likely have two hits once the debt collector has reported it. This double hit can be very difficult to move forward from.

Should I Pay a Medical Debt in Collections?

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First and foremost, be sure you know how old your debt is and how close to the statute of limitations your account is getting. In most states, the statute of limitations is seven years. That means that the debt will show up on and negatively affect your credit report for seven years but will disappear after that time limit. Collection agencies will no longer be able to harass you with repeated phone calls or notices about the delinquent account.

Suppose you have a newer debt (further from the statute of limitations) and an old debt (such as a hospital bill or fee from a doctor’s office). In that case, you will want to work to pay off the newer debt first since it is more likely to be on your report and affect your credit score longer than the old one. You will receive less benefit to your credit by paying off the older one.

It is important to show members of the collection industry that you attempt to pay the debt with all debt. Financial irresponsibility will never benefit you or your credit score, so it is wise to settle the debt with the collection agency or make a payment plan. With payment history under your belt, your credit rating will improve, and you can show that you are working to be financially responsible.

Many businesses hire collection agencies in St. Louis, MO, to get the money owed from Missouri residents. If the creditor has taken legal action against you and you have been summoned to court for the debt, you must attend your hearing, explain the situation, and try to arrange a settlement or payment plan.

Many factors contribute to whether or not an individual should pay off medical debt. It is highly recommended that you make arrangements with the business to make payments or get financial aid for your bill before the first attempt to collect an unpaid debt. This can avoid the serious consequences of hiring a debt collection agency and save you a great amount of stress and anxiety following a medical procedure.

Contact Our Medical Debt Collection Agency for More Information about Unpaid Medical Bills and Fair Debt Collection Practices

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Suppose you are a business owner or medical practitioner in St. Louis, MO. In that case, that needs to hire a debt collections agency, HMS Collections is here to provide comprehensive medical debt recovery services. We always adhere to the Fair Debt Collections Practices Act and follow HIPAA Privacy Regulations during our collection attempts.

At HMS Collections, we offer a competitive fee schedule, no collection/no fee guarantee, and complete transparency. If you have 30 days or more delinquent accounts, you should consider hiring a debt collection agency to handle collecting the money so that you and your staff do not have to contend with it. HMS Collections uses the latest technology and best techniques to get you owed money.

When you have unpaid debts, your St. Louis, Missouri business may suffer from the inability to collect payments. At HMS Collections, we know all of the excuses delinquent patients have used to avoid paying their debts. Still, we will not be swayed or allow the client to be financially irresponsible. For more information about collecting unpaid medical debts or our collection practices, contact HMS Collections.

Save your team time, energy, and stress when collecting unpaid debts from your clients. Call us for a free consultation and find out how to help your St. Louis company succeed!


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