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Keep detailed notes about each violation of this request, making sure that both you and any witnesses to the contact will be able to testify at a much later time if you decide to take legal action against the collector. One ideal way is to have witnesses write a statement specifying the date, time, and details of the contact. Each of you should retain a copy.
Does my employer have other ways of finding out about a collec- tion? Collection action may appear on your credit report with the three credit report agencies: Experian, TransUnion, and Equifax. If you apply for a new job or are considered for a promotion or transfer in your current job, the federal Fair Credit Reporting Act (FCRA) allows employers to obtain your credit report as part of an employment background check. In this way, your employer may find out about any accounts you have in collections and may make decisions based on that information.
Debt Collectors and Medical Bills
Collection of medical debt is a major consumer issue. A recent study by the Federal Reserve Board found that nearly half of all collection actions appearing on consumer credit reports are for collection of unpaid medical bills. (www .federalreserve .gov/pubs/ bulletin/2003/0203lead .pdf)
May a doctor or hospital refer an overdue medical bill to a collec- tion agency? Yes. HIPAA, the medical privacy rule that became effec- tive in April 2003, allows a health care provider to disclose information to a collection agency. HIPAA also says an overdue bill can be reported to a credit reporting agency.
Collection of an unpaid bill is considered a payment activity under HIPAA. Thus, it is not necessary that you give your consent before a medical bill is referred to a collection agency or before a negative entry is placed on your credit report. However, you may dispute a medical bill with the health care provider or a collection agency. If you do, the
Fair Debt Collection Practices Act