NLIC.org

Neil Said:

Question about a collection agency?

We Answered:

All those financial applications to the hospital mean nothing. For whatever reason, you did not qualify for a charity program. You usually have to make those arrangements before or right after the services are provided. You may want to keep all that proof just as background but it really has no bearing on the debt and won't help with the collection agency.

As to the collection agency, if the collectors mouth was moving, he was lying. The whole spiel is to get you to send money NOW. Collectors work on commission -- the sooner and more he collects, the more he makes.

You should be able to negotiate a settlement of 50% or less -- the older the debt, the smaller the settlement. Lump sum gets the best deals. Payment plans have to be short term -- less than 6 months. You should also ask for a pay for delete -- you pay and they remove the item from your credit report. Get any settlement agreement in writing before you pay. Keep that agreement along with your payment proof, forever. Do not give the collector direct access to your bank account.

The debt is probably already showing on your credit report and while it will damage your credit, it will age off 7-1/2 years from the date of default (figure 30 days after the medical services). The older the debt, the less impact on your score. So it won't keep you from ever getting a car or house.

I suggest you let the debt just simmer while you save up and then make a lump sum offer. If they don't accept, wait a few more months and make another offer for less. The collection agency could sue you, but since you already told them about the financial aid request, they probably won't bother.

Neil Said:

CIC (Certified Insurance Counselor) vs. ARM (Associate in Risk Management)?

We Answered:

I don't think it matters much.

Dave Said:

zac cooper associate insurance agency and new island limited?

We Answered:

Um, still don't see your question.

Armando Said:

If you are working under State Farm Agency/Office/Branch?

We Answered:

I was in private financial practice for 11 years. Now semi-retired and spending most of my time and energy operating a nonprofit ministry, I'm doing the same thing with a Farmers agent. I can't speak for State Farm, but I'm sure the policies and practices are similar. If you are being offered a base salary, chances are you are an employee of the agent, not State Farm. That is the arrangement I have. You may or may not be an appointed agent with State Farm, but this is probably not a requirement. Be advised that the company will want you to sign a producer agreement, and may even apply some pressure to your employer to have you do so; but for most companies, this IS NOT a requirement. Your employer has the right to do it either way, so it should be between you and him. I would recommend that you not sign any agreement with State Farm unless it offers you benefits, as it could restrict your flexibility and expose you to liability. You would simply produce all business in your employer's name. You would simply be a staff member; all compensation and other issues would be by private agreement.

Now, chances are, your State Farm guy is primarily a P&C agent and doesn't know squat about financial products such as life insurance, as my Farmers guy doesn't. Unfortunately, he is also probably too ignorant to realize how ill-informed and unqualified he is. Group I products (life, disability, LTC, etc) are financial instruments and are to be employed from a comprehensive financial planning perspective, rather than "sold" as an insurance product. Insurance agents are typically not qualified to do this. If you're serious about this, you should probably look into a career contract with a genuine financial company (hint: if the company sells auto or homeowners coverage, that's probably not the one).

Best wishes.

Ida Said:

Can a collection agency attempt to collect "collection fees" though the accounts were resolved via creditor?

We Answered:

Dispute the items to the credit bureaus. You don't need a specific letter format to do this -- you don't even need complete sentences. Just indicate that both debts were resolved with the original creditor and you do not owe these collection agencies anything.

If that doesn't get the items removed (and chances are the collection agency will verify to the credit bureaus), send the collection agency certified, return receipt letters requesting validation of the debt to include the name of the original creditor, amount of the debt, and copies of any documentation proving this debt is yours. Give them 30 days to respond.

If they fail to validate, send another dispute to the credit bureau with a copy of your validation request, indicating they failed to validate the debt.

If they do validate, you should be able to show proof the debts were resolved with the original creditors. I hope you got a receipt for return of that equipment and something from your insurance on the medical bill.

The collection agency had a contract with the original creditors. They should talk to them about any fees.