Collection Agencies and Their Advantages and Disadvantages

Medical Debt Collection Agency

Medical Debt Collection AgencyGetting paid by Medicare or Medicaid for services rendered is one thing, but collecting payment from current patients is another. Medical practices of all types eventually hire a collection agency to collect money from current patients for medical bills to reduce losses due to non-payment by current patients. These collections agencies often use tactics that may be against the law.

Medical Debt Collection Agency

The most common complaint against debt collectors is that they go after the patient’s money without offering any type of compensation or warning. It is illegal for collection agencies to harass patients, lie to them, or take money without warning the patient of their rights. Some debt collectors will call repeatedly and threaten to sue. This is never recommended since a lawsuit can cost the patient’s health insurance policy. One tactic used by collection agencies is known as aggressive selling of life insurance policies. When a person purchases life insurance, they are agreeing to pay a fee for coverage. However, if the client cannot pay the fee, the collection agency is allowed to sell the policy to pay off the outstanding debt.

Before using a collection agency, it is important to research a collection agency that has a good reputation and a good history of success. If a person feels as if they are dealing with a scam, it is important to file a complaint with the Federal Trade Commission. In many cases, the agency can provide the consumer with help in dealing with collection agencies and finding a trustworthy agency.

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