I was involved in a car accident some time ago and my insurance company declined a claim that was submitted by second party involved in the accident. Now a collection agency harassing me over the phone despite the fact that my insurance company sent them decline letter. Why do collectors continue to call me if they should contact my insurance instead?
What should I do? My insurance company does not help me stop this harassment.
Answer by MarcapPub
A collection agency has nothing to do with a declined insurance claim. Unless there was a subsequent lawsuit in which you lost, but did not pay, you do not owe any money to anyone. If there was no lawsuit, then there can be no collection agency involved.
If the party to whom the claim was denied, simply placed the amount they felt was owing to them with collection without a lawsuit, they have violated the law.
I think that perhaps you should speak with a lawyer who can better advise you further.
Answer by Vrtigo1
If you were found to be at fault, or liable for reimbursing the 2nd party for their expenses, and your insurance company declined to pay the claim, then you must pay it out of pocket.
If you don't want to pay their expenses out of pocket, then you can try taking your insurance company to court to force them to pay the claim, but you need to make sure that the coverage you had at the time of the accident actually obligates them to pay, otherwise you'll lose.
The collections agency probably bought the debt from the second party involved in the accident. In other words, the second party probably decided they were never going to be able to collect any money, so they sold the debt to a collections agency for a certain percentage. Let's say the original amount they were owed is $ 10,000. The collections agency might buy that dept from them for $ 2,000 because they think they'll be able to collect. If this is the case, then you and/or your insurance company now owe the money to the collections agency.
If you didn't have the proper coverage, or don't want to take your insurance company to court, then the responsibility to pay the collections agency falls to you, so there's not much you can do about the collections agency calling you, because you owe them money.
If you're not going to pay them, you can send them a certified letter telling them that you have no intent to pay and that you no longer want them to contact you, they have to abide by that letter, but you can count on them doing everything possible to destroy your credit if you go this route.
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Orignal From: collection agency harassment over car accident with declined claim?
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