Legality of collection agency fee...

[Knoxville-Horn]

Anyone know the rules concerning the legal amount a collection bureau can charge to collect a bill?

As per my other thread from last week, my insurance company has refused to pay a bill as they claim it was the result of a drunk-driving accident that I was in last summer. (By the way, I was hit by a drunk driver; not the other way around.)

Anyway, as we have fought and fought with the insurance company, the doctor's office has apparently sent the ~$400 bill to a collection agency at which point they have apparently added a $300 collection fee. Therefore the bill is now over $700.

We're pretty sure we've got a good case against the insurance company; however, in taking the first step of paying the doctor bill ourselves, I am concerned about this additional $300 -- which I feel to be excessive.

 

[notreally]

i'm no expert, but i think it depends on the status of the collection whether they charge and how much. i have a friend that owns a collection agency here in dallas.

the way they do it is they buy debt that has been written off for set price and then they can keep everything they collect.

the other way, if the debt has not been written off, is to get a percentage of the debt collected. it is usually in the area of 30%-40% of debt collected.

i'm not sure why they would do it this way. seems like if i was the one owing the money, i would pay the original $400 to the doctor and tell them to screw off.

 

[TxStHorn]

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[Knoxville-Horn]

Wait a minute. Let me see if I'm reading y'all correctly.

Your saying go back to the doctor's office, pay the $400 and that I'm not somehow obligated for the other $300?

 

[TxStHorn]

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[goofyboy]

Pay the Doctor. Your deal was with them, not the collection agency.

check here:The Link

they have more info than you will ever need.