Michigan’s consumer debt problem has exceeded most other states in the country. The unemployment rate is over 4% which makes it one of the top 15 states with the highest unemployment rate. This has led to exuberant credit card and mortgage debt, as well as medical debt. And the reality is that some medical care providers have had no choice but to seek out repayment by using a Michigan medical debt collection agency.
If you are one of those healthcare providers who finds themselves in need of debt relief, here are a few things to keep in mind before contacting a Michigan medical collection agency.
Michigan Medical and Health Care Debt Collection Statistics
The national average for unpaid medical bills is a little over $500. This may not seem like much until you take into consideration that 20% of Americans attribute to medical debt. Medical debt is actually the leading cause of bankruptcy amongst consumers in the United States.
And for a single medical professional, those unpaid bills can really add up. While systems are being set in place to help patients make affordable payments for healthcare services, some providers may still need help from a Michigan medical debt collection agency. This may seem like a negative alternative to some healthcare providers, but the process that medical debt collectors take is both practical and efficient.
Michigan Medical Debt Collection Agency Laws
In addition, creditors, such as doctors and hospitals, cannot seek legal action against their patients until the statute of limitations has been met. In Michigan, this time period is six years. After six years of non-payment, the medical professional is able to sue patients for unpaid debt.
Obviously, this is not the route that most professionals take as they wish to preserve amicable relationships with their patients. However, they may choose to seek unpaid debt by way of a Michigan medical debt collection agency. These agencies will work to communicate with former patients to find suitable payment solutions.
Collection agencies are now ordered under federal law to obtain unpaid medical bills in a cordial and ethical manner. Collection agencies are barred from continuous harassment (i.e. making relentless calls to a patient). This policy has been implemented nation-wide so doctors can rest assured that their patients are being treated with professional courtesy.
Michigan Medical Collection Agency Process
What a collection agency will do, however, is pretty standard. Once the medical debt is sold to an agency, the agency then makes efforts to get in contact with the debtor. This is usually done through phone, direct mail, or email. Keep in mind that agencies are allowed to contact these people at work until the creditor specifically requests that they do not call work numbers. A patient can also request that a debt collector stops contacting them entirely. In such cases, legal action may be necessary in order to obtain the unpaid balance.
Under The Federal Fair Debt Collection Practices Act, a Michigan medical debt collection agency can only call patients between the hours of 8 a.m. and 9 p.m. They cannot falsely advertise the reason for their call and the debt collectors are forbidden to harass these individuals. You can read the full scope of these terms here.
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