by Guest » Sun Sep 27, 2009 05:40 am
I reside in California. I was involved in an auto accident a few months ago and found out that I was at fault. The property damage exceeded my policy limits. However; the other party did accept my insurance carrier's offer up to my max limit and rest would be covered under their "uninsured motorist" on their policy.
Just recently, I received strange threatening phone calls/messages from a Collection agency who say they are representing the other party's insurance company whom are demanding the full amount of the property damage (not deducting what my insurance company already paid the other party's insurance on). Just 2 days after the calls, I received a letter demanding the same amount.
I called my insurance company (the claim case manager) to find out what was going on because I was never notified by the other party's insurance in any way. My insurance told me that they were unaware of this strange activity by a collection agency and told me to seek consultation on my own (by the way I am a student and have NO income at the moment).
Someone please advise on what steps to take or what is even going on for that matter! Thank you
Just recently, I received strange threatening phone calls/messages from a Collection agency who say they are representing the other party's insurance company whom are demanding the full amount of the property damage (not deducting what my insurance company already paid the other party's insurance on). Just 2 days after the calls, I received a letter demanding the same amount.
I called my insurance company (the claim case manager) to find out what was going on because I was never notified by the other party's insurance in any way. My insurance told me that they were unaware of this strange activity by a collection agency and told me to seek consultation on my own (by the way I am a student and have NO income at the moment).
Someone please advise on what steps to take or what is even going on for that matter! Thank you
Posted: Sun Sep 27, 2009 05:44 am Post Subject:
By the way the vehicle was totaled*
Posted: Sun Sep 27, 2009 11:13 am Post Subject:
If you have already settled with the other party tell these morons to take a hike. If they continue to call, inform them that you will be filing with the FTC as they are in violation of federal law. These idiots will usually stop calling after that.
Posted: Sun Sep 27, 2009 04:01 pm Post Subject:
This is extremely unfortunate for you and happens all the time in the insurance industry. Insurance agents are aggressive and try to get the sale and quote the lowest possible prices and the lowest coverages come with this. Good thing for state minimums or we would see a lot more of this. People switch companies for a few dollars a month, instead of getting in touch with an agent they trust, who will always do them what is best for them and their family and make sure this doesn't happen to them. I would consider increasing your coverage, and if you was a victim of the lowest price, then consider interviewing agents who have your best interest in mind.
Posted: Mon Sep 28, 2009 09:51 pm Post Subject:
I'm not in the collection business, so I'm not fully aware of their laws nor regulations. However, with that said, if it were me, I would follow through with this. If it's at a collection agency, there is always the possibility it could end up on your credit.
I would recommend only communicating with this collection agency in writing. They are only out for one thing - to collect money from you. You need to treat this as if you are dealing with a prosecutor - everything you say can be used against you.
Were you able to obtain proof of payment from your insurance company?If it were me, I would first start by sending the collection agency a copy of the proof of payment from the insurance company. Tell them in the letter the damages were paid in full and enclosed is proof. While that isn't necessarily the case, it is a good place to start.
Also, familarize yourself with the collection laws for your state. Make sure you are getting your information from a reliable source.
Third - pull your credit report from all 3 major credit bureaus to see if it's been put on there already. You can obtain it free once a year from annualcreditreport.com. If it does show up on your credit report - dispute it. The Fair Credit Reporting Act will require the credit agency to prove the debt. Information about disputing the charges will be included with your credit reports.
The fact that the claimant (person you hit) received payment under their Uninsured/Underinsured motorist coverage shouldn't absolve you from being responsible to pay the excess amount. Their insurance company has the right to go after you to get the money they paid back.
With that bad news out of the way though, if all else fails, you may want to negotiate a settlement with the collection agency. If you are successful in doing so though, do not pay it until you receive the agreed terms in writing. They need to acknowledge the negotiated amount settles their claim in full.
Posted: Tue Sep 29, 2009 12:55 am Post Subject:
OK...let's make sure that you get some accurate info here...
First of all, chances are that this is just some poor communication. What surprises me is that you are already hearing from a collection agency (CA).
One of the things that we need to know is this: who is the creditor named in the demand notice (not the telephone calls) sent by the CA? Is it the claimant's insurance company? If so, it sounds as if someone at the insurer got an itchy trigger finger and contacted the CA waaaaaay too prematurely. As a side note, creditors will normally ask the debtor for the money first and not immediately assign the account to a CA.
Secondly, you stated that the claimant has decided to accept your policy limits from you and get the balance from his UMPD coverage. Not uncommon at all. While they have the right to go after you for anything they pay their client, it doesn't happen that much with UM claims. Not suggesting it's not going to happen, but it MIGHT not. Your statement of
I received strange threatening phone calls/messages from a Collection agency who say they are representing the other party's insurance company whom are demanding the full amount of the property damage (not deducting what my insurance company already paid the other party's insurance on).
That's what tells me there's some bad communication going on here. Call the other insurance company and ask to speak with their claims department. From them, find out who takes care of this sort of thing, and finally, explain to THAT person what's going on and this should clear it up.
On the other hand, I could be all wrong! :lol: Doubt it, though.
Finally, do NOT pay ANYTHING to the CA at this point! This is a bad move for a number of reasons credit-wise and that's another discussion. The clarification here should come from the claimant's insurer- not the CA.
InsTeacher 8)
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