blog image

Are Attorney Demand Letters Effective at Collecting Medical Debt?

March 29, 20248 min read

The medical debt collection industry is a lucrative one, with many companies engaging in unethical practices to earn their keep. Unfortunately, this includes using demand letters as a way to collect old debts.

Demand letters are usually sent by lawyers or collectors when they feel that someone owes them money but has refused to pay voluntarily.

By sending these letters, the creditor is typically asked to immediately make payment and contact the sender for more information about the account.

If you receive such a letter it can be difficult to know what to do. It may seem like an exaggeration or even fraud when the demands are made. However, legal action can be taken against those who refuse to repay their loans.

This article will go into detail about how powerful attorney demand letters can be in helping patients get out of debt.

Will they get their money back?

The main goal of an attorney demand letter is to obtain payment for medical bills that have been overbilled or misdiagnosed. More than half of all physicians’ practices have staff members who handle billing, so it is not uncommon for them to fail to review properly before submitting a claim to a third party like a health insurance company or a credit card.

Some doctors will correct their mistakes after being asked about them directly but others never do. It can be very difficult to prove whether or not someone acted negligently without direct eyewitnesses or evidence proving negligence, which are both pretty rare.

In some cases, patients will dispute the accuracy of their diagnosis or say they did not feel comfortable with how much care was given due to cost. If you fall into one of these groups, then sending an attorney demand letter may help push through payments that would otherwise take months if ever!

Will they give your money back? Probably not. Even though most large hospitals and doctor’s offices have internal procedures in place to ensure proper medical billing, there are still ways to hurt your wallet when seeking compensation for excess medical costs.

Most importantly, even if your bill was completely legitimate, many insurers and credit cards will only offer limited reimbursement. This is because medical debt is often framed as “consumer debt” under federal law, which means protecting companies from lawsuits is more important than paying actual medically-related debts.

What about the debtor?

While most of us are focused only on collection agencies, there is another major player in this battle – you! As a consumer, you have a right to be frustrated by medical debt.

Collection agencies hire them to handle credit card debts for money, but they leave out one very important person: You!, the average consumer.

Medical bills can easily add up quickly, so it’s not surprising that many patients struggle to pay their debts. In fact, more than half (53%) of all bankruptcies filed in 2017 were due to unmanageable medical bills, according to Forbes.

And while some individuals may feel overwhelmed by medical bill creditors, there are things you can do as a consumer to help get rid of these debts.

Here are eight tips to stop aggressive medical billing and put more money into your own wallet.

What should I do if I owe money to a hospital or doctor’ll

If you are in debt due to medical bills, you may be able to reduce your payment burden by paying off some of your debts.

In fact, one of our favorite ways to eliminate credit card debt is to go aftermedical debt. This can include accounts with hospitals, doctors, physical therapists, oral surgeons, and other health care providers.

Many times these institutions will send collection letters demanding repayment that fail to mention the court process for suing patients.

Medical debt collection law in the US

In many states, including my own (California), there are strict regulations when it comes to medical debt collection. These include limitations on collection actions such as calls or visits from collectors, restrictions on collector fees, and laws that protect you as a consumer against illegal activity.

In some cases, these protections extend up to six months after a payment is made which is what happened here. After paying $600 for her medical bills in January 2018, you’ll notice that she didn't hear back from them for almost two whole years!

That's over half a year where they could have done something about this unpaid bill and it left us no choice but to take action. It was our responsibility as consumers to do so, and we're confident we did everything legally possible to bring closure to Angelica's case.

Nevertheless, we still received permission to send her demand letter more than once due to what we describe as "irregularities" with her account. This article will talk more about why this happens and how to avoid sending multiple letters.

Medical debt collection in the UK

Recent developments for medical debt collections in the United Kingdom (UK) are quite alarming. More companies have started using threat of legal action as a way to collect old, past due debts.

Threatening people with expensive litigation is never okay, so it is very concerning when this happens for financial reasons. It can be particularly harmful to someone who is already going through a difficult time because of a health issue or loss of employment.

This article will discuss some potential risks of attorney demand letters in relation to collecting unsecured medical bills. If you are contacted by an attorney about your unpaid medical bills, there are things you can do to prevent these threats from happening.

Attorney demand letters refer to correspondence sent to individuals between attorneys and creditors seeking payment on a credit account. These demands usually occur after several attempts to negotiate a settlement have failed, or the individual has stopped responding to messages and communications.

Many times, professionals working towards repayment face significant challenges in getting rid of all outstanding accounts. This is especially true if the individual receives benefits that cover their lifestyle, or they live in a location where cost-of-living is high.

In cases like these, it may seem easier to just force payment via legal proceedings. However, this is not always the best option.

Medical debt collection in Australia

Recent developments for medical billers seeking payment include using legal demand letters to communicate with patients about their unpaid bills. A letter written under attorney review is illegal only if it contains false information or promises of action that cannot be fulfilled.

Attorney reviewed letters are also more likely to work as they come from a lawyer, which can convey credibility. If you send an un-legal letter, your sender number may end up getting listed on various websites where people share their debt collector experiences.

Medical debt collection in Australia has its own set of challenges due to our national health care system. Many hospitals and doctors outsource billing services, making it even harder to find someone willing to help pay your bill!

If you’re struggling to repay your hospital or doctor bill, there are things you can do to get rid of this debt. We have compiled a list of suggestions including talking terms with lenders, offering frequent updates on your credit file, and asking around to see who will actually pursue money.

Medical debt collection in Canada

Recent developments for medical billers seeking payment include using legal action to collect outstanding debts. These actions can include sending letters or emails demanding repayment, filing lawsuits against individuals, and even taking more drastic steps such as garnishing wages or seizing bank accounts.

Many of these collections strategies are used outside of the Canadian Legal System, so they are not considered legal action. However, it is important to understand that each of these tactics are unethical and illegal if carried out without proper licensing and compliance procedures.

Medical bills can easily pile up, making it difficult to stay afloat financially. It is very common to find yourself in a situation where you need to obtain health care, but cannot do so due to an ongoing financial crisis.

Fortunately, there are alternatives to paying off your medical debt. There are credit card programs which offer affordable healthcare to those who qualify. Additionally, many hospitals will work with you to lower the cost of treatment or provide free services while you recover.

This article will discuss some potential scams related to medical debt and what may be able to help you avoid them.

Medical debt collection in Europe

Recent developments in medical debt collection have come from outside of America, where countries like Germany implement laws that prohibit debt collectors from using threats or pressure to collect debts.

Threats include telling patients their health insurance will be canceled if they don’t pay their bills, and false promises about reducing the cost of care or helping them obtain other services.

In some cases, hospitals and physicians hire third-party service providers to pursue delinquent accounts. These companies are allowed to use aggressive tactics such as lawsuits, garnishments, and credit reporting against borrowers, making it difficult for people to find employment due to negative reports.

While these practices are illegal in many parts of the world, they continue here in the United States because most lenders are not informed of them. This leaves patients with no choice but to comply.

Medical debt collectionAttorney demand lettersUnethical debt collection practicesDebt collection industryDebt recovery strategiesDebt collection regulationsMedical debt settlement
blog author image

Mike Singletary

Mike Singletary, founder of Zindo, is depicted as the visionary behind the innovative debt collection agency. With a background in finance and a personal mission to streamline debt recovery, Mike combines expertise with a passion for helping businesses overcome financial challenges. His leadership at Zindo reflects a commitment to ethical practices and effective strategies in the debt collection industry.

Back to Blog

Contact Us

(832) 400-6010

mike@zindoit.com

604 W 13th St, Austin, TX 78701

Navigation

Home

About Us

Our Process

Who We Help

Blog

Pricing

Invoice Upload

Contact Us

Blog Articles

website designed by cavenaughmedia