How to Write a Debt Validation Letter for Medical Bills?
Medical debt can wreak havoc on your life in more ways than one. For one, it can cause you difficulty when you're trying to get help for an illness or injury. Secondly, it can cause you to suffer from bad credit. A bad credit score can convince potential creditors to deny you some of the essential items you need in life, such as a car or a place to live. You might be wondering how to get rid of medical debt right now, and it's understandable.
One thing you can do to alleviate medical debt is to craft a debt letter of validation for medical bills. This is some information on medical debt and some of the steps you can take to get rid of it. It also includes information on how to write a debt validation for medical bills.
How Do You Write a Debt Validation Letter for Medical Bills?
It's fairly easy to write a debt validation letter. First, you should start with a salutation and the account number. Next, you'll need to state that the letter is a response to communication you received by telephone or email on a specific date regarding the account.
Let the company know that you would like them to prove that the debt is yours. State that you would also like them to prove that the debt is within the statute of limitations. You'll also need to request the address information of the original creditor plus proof that the requesting organization has the authority to collect a debt from you.
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First, What Is a Debt Validation for Medical Bills?
A debt validation for medical bills is a verification that a debt you owe is valid and eligible for collection. For a medical debt to be valid, the medical institution must prove that you owe it beyond the shadow of a doubt. The kind of proof that they'd need to produce would be a physical or digital signature that you've provided. For example, a hospital or doctor's office may have asked you to sign a letter of financial responsibility when you received care from them. That letter most likely stated that you would accept responsibility for all medical bills even if your insurance company was unwilling to pay them.
A medical debt must also be within the statute of limitations if the medical institution intends to come after you for it. Therefore, the validation will require the collecting institution to prove that the debt is still collectible. The statute of limitations for medical debt is different in different states. For example, collectability for a medical debt in Georgia may be as long as six years. As a South Carolina resident, the statute of limitations would end for you after three years.
A creditor is not legally eligible to ask a court to force you to repay a debt after the statute of limitations ends. That's why it's important to write a debt validation letter for medical bills. The letter will force the collecting party to prove that the debt is yours, you agreed to repay it, and it's within the allowable collection period. If not, then you have various actions you can take.
An Example of a Sample Letter
Here is a sample of a debt validation letter for medical bills. You can send this if you receive a letter or phone call requesting that you pay a debt you're unclear about. It might be wise to send it via certified mail so that you can prove you did, indeed send it.
To Whom it may concern,
Re: Account Number XXXXXXXXX
I am contacting you regarding a letter I received on {date} notifying me that I owed money on the account number referenced above. I respectfully request that you provide me with validation of this debt.
Please send me the following information:
The address and contact information of the original creditor as well as the account number.
Any documentation that shows the amount owed and verifies that I am the debt owner and have obligated myself to pay such a debt.
Details of the account such as its age, the last billing statement, an explanation of any accrued interest, and the date on which the original creditor deemed the account delinquent.
A statement of whether the account is within the statute of limitations and how you concluded such.
Details of your authority to collect such a debt. Please forward any licensing information that you have.
Sincerely,
Your Name
Why Would You Need Write a Validation Letter?
You need to write a validation letter for medical bills because the debt they're asking you to pay may not be valid at all. Not every request for payment of a medical bill is a valid request. Scam organizations are out there, and such organizations may send out mass payment requests to see who they can get to pay a debt. You must ensure that every notice sent to you requesting payment is a legitimate one. That's why it pays to sit down and write a debt validation letter for medical bills.
The Time Allowed to Request Verification
You have 30 days by law to request that a creditor validate your debt. You must send them a letter within 30 days from the time you receive the first contact from them. You may risk being uncovered by the law if you wait any longer than that. The creditor will not be allowed to contact you for any debt collections or place anything negative on your report until they provide you with proof that you owe the debt. Your request must be made in a letter format and sent in the mail. Phone calls for proof of debt validation will not be accepted.
What Happens After You Write a Debt Validation Letter?
The creditor will have to respond with the information you request after they receive it or they will risk losing the ability to collect the debt. The debt may be deemed invalid if the debt collector does not or can not establish that it belongs to you. They may try to sell the debt to another collection agency to get money. In that case, you will have to request a new validation from the next agency when they contact you about the debt. You should be fine as long as you continue to stay on top of the notices you receive.
What to Do if Your Medical Debt Is Valid?
If you find that your medical debt is valid, then you will need to take action to have it corrected. Paying off medical bills might be an option worthy of your consideration. If you pay the medical bills in full, then your obligation will be over and done with. However, you must be aware that just because you pay an old debt, it doesn't mean that the creditor will remove it from your credit report. That's something you need to consider before you make any moves. We are not going to try to coax you to do one thing or another. The choice is yours.
Arrange Something With the Creditor
You can choose to arrange something with the debitor if you find that your debt is valid. For example, you may want to set a payment arrangement and repay the debt the best way you can without breaking yourself. You'll also want to talk to the creditor about removing the debt from your credit report after it's paid. You should request that the creditor put the agreement in writing so that you have proof of their intent. That way, you can send the proof to the credit bureaus if the creditor doesn't hold up their end of the bargain.
Allow Time to Lapse
Another way that you could handle the debt is by leaving it alone and allowing it to fall off your credit report naturally. We don't recommend doing that because it can leave you in a bad place in terms of credit until that time comes. Most items will come off of your credit report after seven years. However, until then, you may be very limited in what you can get from potential lenders. It could put a serious monkey wrench in your life if you're thinking about buying a home or you need a personal loan.
If you're going to go that route, then you have to do it 100 percent. That means you should ignore all the creditor's calls and avoid providing any information about your job, bank accounts, and so on. Do not make any payments on the debt, not even small payments. When the seven years pass, you can dispute the account with the credit bureaus and tell them that your reason for the dispute is that the statute of limitations has passed.
Try Debt Settlement
Another method you can try to clean up your debt is a debt settlement. A debt settlement is an agreement between you and the creditor to settle your debt for a lower amount than what you owe. For example, the creditor may agree to allow you to settle a $1,000 debt for $500. If you accept this arrangement, you can pay the debt and have it taken off your credit report. However, you are going to have to ensure that the creditor gives you something in writing that proves its intent to remove the debt from your credit report. You'll be very frustrated if you empty your wallet to take care of a debt that remains on your report adversely.
Consider Bankruptcy
Finally, you might want to consider filing for bankruptcy if you're debt situation is that bad. A bankruptcy could clear you of almost all your obligations if you're eligible for such a solution. The downside of filing for bankruptcy is that your credit may be ruined for up to 10 years. Again, the choice is yours to handle your debt the way you see fit. Perhaps, you should consider talking to a specialist about your options. That individual can help you to make a choice that's in your best interest. The two of you will decide what's best for you together.
Contact us for Help
You should now understand the basics of a debt validation letter is and why and when you would need to write one. You can reach out to us if you need any more assistance with any aspect of debt, credit, or other personal finance topics. We are a consumer advocate who helps consumers to straighten out their personal finance problems. We can connect you with various products and services that you might need during your journey to recovery. We are not a lender, but we're heavily affiliated with many businesses that offer consumers loans for various purposes. We also have connections with counselors and specialists who can coach you to financial health.
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