Friday, September 19, 2008

Unpaid hospital bills are being auctioned to debt collectors.

Hospitals are trying to recover unpaid medical bills by auctioning the debt online. Debt collectors will buy the debt or provide guaranteed payments to hospitals for access to the unpaid accounts. The agencies will receive a portion of the fees collected, so they will try to collect more than the debt owed, in order to cover its initial investment, and they may be more aggressive with the debtor because they need to recoup their costs.

The auction-site owners say that they have safeguards in place to protect patients from abuse, such as recording the telephone conversations and getting permission from the hospital before suing a patient.

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