Debt collection isn’t the easiest of jobs. Debtors often don’t want to be found, or be reminded of their debts—the exact things a collection agencies do. While collection agencies have every right to pursue unpaid debts, there are laws and regulations that define what collection tactics are and are not acceptable.
The Affiliated Group Blog
On the surface, medical debt isn’t any different from other types of debt. It can end up on your credit score, is dischargeable in bankruptcy, and can have a negative impact on your credit score. However, there are a few reasons why some consider medical debt a more unique form of debt.
Because of unreimbursed loan cancellations in recent years, Perkins loans payments have been down -- leading to reduced availability of funds for the program and putting the entire program in doubt.
The Perkins loan programs fill a needs for lower- and middle-income students with weak or no credit and also have families who earn too much to be eligible for Pell Grants. These loans can be the difference make in whether or not a hopeful student can attend college.
Being a college graduate can be difficult these days. With the job market slowly on the increase, hiring is hit or miss depending on where you live, adding to the stress of student loan repayments. The last thing you want to deal with while searching for a job once you’ve graduated is government collections. By implementing some of the following tips, however, you may be able to handle repayment, whether employed or otherwise.
Medical issues can sneak up on anyone and are simply a part of life. Hopefully the following list can give some insight on how to go approaching the processes of repaying a medical debt.
The following are a few things to consider and remember when dealing with medical debt collections.
Thursday, New York’s Department of Financial Services, or DFS, announced proposed regulations that, according to the DFS, are a “set of nation-leading reforms to help protect consumers against abusive and deceptive debt collection practices.” The new regulations bring many new requirements to accounts receiveable management companies operating within the state, but also pave the way for e-mail communications between collectors and customers.
According to the CFPB, as of July 17th, financial institution debt “no longer represents the largest focus of debt collection activity”. Corey Stone, the assistant director of the CFPB’s Office of Deposits, Cash, Collections and Reporting Markets, stated that healthcare providers now represent the largest group of collection agencies customers, as well as agencies’ largest amount of recoveries in terms of dollars.
Because of popular stigma, the general public seems to fear debt collection calls. Whether calling in regards to a medical debt collection, or student loan/government debt collection, people still worry. It is understandable to worry if the call comes “out of the blue”, as it can catch you off guard and throw a wrench into your financial plans
However, there is no need to panic. The following are a few things to keep in mind when dealing with a collections call.
It never hurts to stay informed on all the ways to increase your credit score. There are plenty of steps to take in order to bring your credit score up to a reasonable level. Here are a few things to consider when looking to increase your credit score:
More states are expanding their use of professional debt collection agencies to acquire government debts. The relationships are primarily formed by state agencies to help settle long-overdue court debts. The trend sheds light on the growing reliance states and municipalities have on private agencies to collect overdue fees and fines issued by state courts.