US medical bill passed onto Debt collector

LibbyL92

Hello, 

cut a long story short I had to visit the ER on my holiday to the states. I received no treatment/X-rays/scans ect. A doctor literally just ‘checked’ me. I had travel insurance and after 40 minutes I was discharged and the bill was going to be sent to my travel insurance. 

Basically, turns out my insurance was not going to cover me. As it was classed as a pre existing health condition.. (unbeknownst to me) what I went through I had no idea was related to a past problem. But anyway… 

the hospital sent me a bill it was for around $500… they applied a tourist discount ($1200 before the discount)
I ignored the letter as I was still under the impression the insurance would sort it. 

Anyway, fast forward a year and half later I received a letter in the post from a debt collection based in Switzerland (but payments addressed to Florida) asking for the $1200… saying my travel insurance and medical centre could not locate me. 

I’m freaking out. I can offer the hospital the $500 in instalments but I think it’s past that now it’s in the hands of debt collector? I can’t afford to pay $1200 outfight. 

I’m at a loss, what do I do?? What can overseas debt collectors even do if I’m in this country?? Do I offer an affordable monthly payment? 

I’ve not slept all weekend and it’s making me sick. 

I know I should have settled this with the original bill but I was under the impression travel insurance was dealing with it. When I heard no more I assumed it was all sorted. At no point did I receive communication that this would be passed over to debt collectors… 

Any advice I would appreciate. 

Thank you, and I hope I’ve posted in the right place. 

LibbyL92

Anyone? Have I posted this in the right place? 

I am from the UK (not US) 

Grumpelstiltskin

Libby yes you have posted in the right place but as your problem is rather specialized you will have to wait until someone with the right knowledge comes along.

LibbyL92

Thank you! I’m way of out of my depth here. 

fatbelly

Yes i spotted your question but enforcement of an overseas debt is very difficult and i've not seen it happen in 20 years of advice work for CA and this board.

There are four categories of enforcement path depending on where the debt originated. The most difficult one is where no agreement applies at all and this includes US, Japan and China.

I'm going to cautiously suggest that the best way to deal with this is to ignore it

MattMattMattUK

I am the same as the above, I have a few opinions but are not sure they are correct in this example, as others have said enforcing overseas debts is not easy, but it also can be done.
I would recommend in that you speak to Citizen's Advice.

sourcrates

Debts from abroad are not easy to enforce in other countries, especially ones without any agreement attached.

Think eBay/PayPal debts, currently an American company, operating out of Luxemburg, they usually send a couple of letters, then all goes quiet, as these debts cannot be enforced in the UK.

Much the same applies in this case, in order for them to do that here, they would have to bring a claim through the English court system, which would first involve them selling the debt to a UK based debt purchasing company, and then that company would take the legal action.

Very complicated, very expensive, a lot of faffing around for a 500 dollar debt now don`t you think.

Realistically, it`s never going to happen, they engaged a swiss debt collector to write to you, as its the cheapest way of contacting you, a scary letter asking for money, honestly, its nothing to worry about.

I will go out on a limb and say, you may or may not be written too again, but that will be the extent of the contact, it will soon go quiet and I doubt you will hear from them again.

DjangoUnchained

i think if youre never going back to the usa again ignore it, but if you intend to return i would make an arrangement with the hospital to pay it in installments, and meanwhile contact your insurance too.

LibbyL92

Guys, I appreciate the reassurance and advice. 

I honestly haven’t slept. 

I am due to return to the states in December. But I understand this is a civil matter? 

So in a nutshell I ignore it. If it was to be sold to a UK debt collector I would then offer monthly instalments? If it goes to court surely the judge would accept a form of instalment to the collecting company? 

But for the sake of $1200 would the overseas debt collector bother? We’re not talking $1000s. 

I will however contact my insurance as try to find out more information. 

Would it be worth me contacting the hospital in the states? 

Exodi

fatbelly said:

Yes i spotted your question but enforcement of an overseas debt is very difficult and i've not seen it happen in 20 years of advice work for CA and this board.

There are four categories of enforcement path depending on where the debt originated. The most difficult one is where no agreement applies at all and this includes US, Japan and China.

I'm going to cautiously suggest that the best way to deal with this is to ignore it

I would cautiously agree with this advice however please keep in mind future travel consequences.

As an example, my partner works for the UK Border Force (as this is an anonymous forum I can say this) and an unpaid medical bill is one of the first thing that flags on identification checks and will prompt refusal.

In some countries, even privately-owned debt is checked at border control.

While I agree with the sentiment that they are unlikely to be able to enforce the debt on you in the UK, I'm not clear on whether medical debt in the US is checked on border control (I appreciate it is different as it is private debt in the US, as opposed to public debt in the UK). It could hamper your ability to visit the US in the future.

MattMattMattUK

sourcrates said:

Much the same applies in this case, in order for them to do that here, they would have to bring a claim through the English court system, which would first involve them selling the debt to a UK based debt purchasing company, and then that company would take the legal action.

Very complicated, very expensive, a lot of faffing around for a 500 dollar debt now don`t you think.

I have seen it done, a friend who was an idiot had it happen to him, but the original debt was around $8,000 so far more substantial which is potentially what made it worth their while. That being said, American healthcare providers do have a reputation of aggressive debt enforcement and any costs of recovery could be added to to the amount being claimed via the court, so I would not personally be willing to take the risk of just ignoring it in the hope that it goes away.