I have A $220 medical debt from 2009, which i began paying off about 5 wks ago (dr.'s office agreed to $40 monthly payments). Their billing office (in another state) referred this to a collection agency at about the same time - approx. a month ago. I called the dr's office about this and they then reported my 2 payments to the agency, and asked them to return the account to their office, but the agency refused, stating that they "have an account with me and have already been managing this". I have not yet spoken to the agency about this, but did receive one letter. Yesterday, in a panic related to the 30-day time-frame, I sent a certified letter to the agency disputing the account, but also stating that I had a prior agreement with the dr's office which I began fulfilling prior to their involvement. I realize that this letter also verified the debt; was this a mistake?
I am now waiting to talk to a particular person at the billing agency (the person I reached yesterday seemed to think it could be worked out - she saw my payments, stated the account wasn't that old, but did also note that they had left messages. I never got them, but do occasionally get ones that are only half recorded and can't be identified).
Does the agency have the right to refuse to return this to the provider? I expect to have this paid off in 3 months, but am concerned about the credit bureaus. The letter I received states that this "may" be reported. If I can borrow the money and pay this off immediately, can they still report this?