Can Collection Agency/Hospital turn bill on your credit report?

by Jennifer
(Indianapolis, IN)

Hi, I received a bill for 835.00. I have paid 100-150 each month. I was still turned in to collections and I was told that IU/Riley Hospital in Indpls, IN will put this on my credit report if the whole bill is not paid within 90 days and the hospital is not obligated to tell me this at the time of service. I have excellent credit and now have only until 2/29/12 to pay in full or will be turned in on my credit. is this legal?

They offer no other arrangements and are not content with $150 a month.

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Feb 21, 2012
Can Collection Agency/Hospital turn bill on your credit report?

Yes, it's perfectly legal. You were obligated to pay your bill in full at the time that you received it. In other words, you cannot decide on your own that you will pay what you owe over time. If you wanted to pay your debt in installments, you should have contacted the hospital right away to try to work out a formal payment plan. Also, since your account with the hospital is past due, the hospital has a legal right to report it as such to the credit reporting agencies.

If you know that you won't be able to pay the balance you owe by 2/29, you should consider contacting the hospital right away to find out if it would consider setting up a formal payment plan with you now in exchange for it's not turning your account over to a collection agency and not reporting the account as past due. I have no idea if at this late date, it will agree to your request but it does not hurt to make it. If you and the hospital are able to reach an agreement, be sure to get the terms of the agreement in writing before you pay any money on it.

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