Idaho issues medical debt collection advice

BOISE, Idaho (KIFI/KIDK) - The Idaho Department of Finance (IDOF) is warning Idahoans to be careful in dealing with medical debt collection issues.

The Department says an account can go into collections after 90 to 180 days of non-payment. The original company owed may assign or sell the debt to a collection agency, or write off the balance. In any case, once you have been notified, you do have rights.

First, verify the debt is valid. According to IDOF Consumer Affairs officers, if you don't understand the call or letter or think it may be invalid, request the collector send validation or proof of the debt. If you dispute it within 30 days, the collector is required to cease collection activity until validation is provided.

if the debt is legitimate, try to negotiate a payment schedule with the creditor and get it in writing. If you dispute the debt, contact the collection agency and notify them of your dispute.

If you do not receive a requested validation, or a debt collector does not acknowledge your dispute, contact the Idaho Department of Finance to file a complaint. Be sure to report any prohibited collection tactics such as intimidation or false threats.

Watch out for companies that charge upfront "servicing" fees before any services are rendered. These fees may be prohibited and can add up quickly, often leaving consumers with just as much debt as they had originally.

Red flags to watch for include companies that instruct customers to stop communicating with their creditors, require fees be paid prior to performing the services, and advertising a "one size fits all" approach to settle your debt at a single promised interest rate reduction.

You can find more information on the IDOF website.