[jenuno01]

Ok so I’m freaking out here and would like some advice/help. Last year I had surgery and thought that it was going to be covered by my insurance. Well it was covered but not entirely. I kept on getting bill after bill after bill… so then I called my insurance and was able to dispute some of the payments. Then I called my original provider and they noted how a lot of the charges on my account were wrong and assured me that everything was taken care of. Well, today I just got a Summons for debt agency suing me! I mean, I’ll pay the freeken $600 that they’re asking for, but does that affect my future as a CPA?! I’ve always had very good credit and this just sucks! I don’t even know what to do? Who do I call?! Any help is appreciated!

Class of 2012

[jeff]

Call the attorney listed in the summons … Tell them you want to pay assuming you agree with the charges. This shouldn't be a big deal, although emotionally it freaks people out.

[MeaDebitum]

I highly doubt it will affect your future as a CPA. Also, there are lawyers that specialize in debt issues. I would find one that offers a free consultation sort of thing to see what they have to offer. At the worst end of things, if you do pay the debt, it can only stay on your credit report for 7 years. So, not great, but certainly not life destroying. Again, I would try and find an attorney who deals with this sort of thing.

[jenuno01]

Thanks Jeff.. It definitely does freak me out… I feel like I am going to get arrested as soon as I walk out of my house! I'll call the attorney listed on the summons… The weird thing is I NEVER got a call from them and didn't even make an attempt to collect from me and all of a sudden a law suit?! FML. I know it's been asked before, butdo employers check your credit?

What's the best source to check your credit history/score? I feel like there are so many out there, how do I know which one is legit?

Class of 2012

[nfs480]

Best place to check your credit report is http://www.annualcreditreport.com It's the official site setup by the FTC. Avoid scams like freecreditreport.com.

FAR 93
AUD 89
REG 81
BEC 87
Ethics 100

Becker 2012 Self-Study

[Anonymous]

I work at a medical facility as the controller and am in charge of our insurance and billing department. I deal with the collection agency on a regular basis. If you contact the agency, they should have some notes in their system showing any attempted contacts. See what address/phone number they have supposedly attempted to contact you at. You may start by calling the facility that you had the medical services at and ask to speak with the billing manager. Explain to them that you have received this lawsuit but have never had any contact from the agency at all regarding the bills. Ask them if they could work with you in contacting the agency to help get this resolved. They may refer you back to the agency and say they can't help but it's worth a shot. I always try to help any patients that contact me directly.

[jenuno01]

@bnrhilton thanks a lot for the advice!!!!

Class of 2012

[Mrs 300]

jenuno, I had a similar situation last year because I have been arguing a $750 medical expense for 2 years now. I was nervous about it because I was buying a house and obviously, this would not make me look good. My attorney told me that medical expenses are viewed differently from a credit perspective. I'm obviously not 100% sure if this is true, but we got the house and my credit score was still pretty high.

REG - 80 (Becker only)
BEC - 76 (Becker only)
AUD - 71, 76 (Becker only)
FAR - 65, 74, 81! (Becker, Wiley Test Bank, Ninja notes & Audio)

CPA Class of 2012 🙂

[jeff]

Pretty sure it doesn't stay on your credit report for 7 years. A BK stays on your credit for 7 years.

[Sandra]

Well if it hits your credit its really easy to dispute off, especially if the debt has been sold.

also are you REALLY sure you are being sued? Did you get served? Did you get the letter certified mail? If not its likely a BS paper they are sending you that looks like they are suing. Something they do to freak people out- because it works.

If you actually owe the full amount and are willing to pay it, its easy enough to make it go away. If not you may want to try and settle this.

[Just PlainPA]

For the record, jenuno01, no, you cannot lose your license simply by being sued. Lawsuits are a civil matter, and it is an inherent risk of being a licensed professional. It's an unpleasant feeling, but it's not one that you will lose your license over.

Now being convicted of a criminal act, being disciplined/disbarred from regulatory agencies (SEC, IRS), and complaints filed with the state accountancy board against you are matters that will put your license in jeopardy, although with the latter, only complaints filed relating to your professional conduct will endanger your licensure (put another way, a client filing a complaint with the accountancy board because they didn't like the high fees you charged on their bill will be dismissed by the accountancy board quickly because the board won't have jurisdiction to act on the complaint. The client will be told by the board to pursue the matter in civil court. On the other hand, a complaint filed because you didn't exercise due professional care on an engagement will be investigated thoroughly and you may be asked to appear before the board at a hearing as a result). But I digress.

But no, civil lawsuits in and of themselves are not grounds for being disciplined by the accountancy board. Just take the steps necessary to get the matter resolved outside of court if at all possible and move on.

AUD - 79
BEC - ?? 10/1/15 (Tentative)
REG - ?? 11/?/15
FAR - ?? Winter 2016

[Anonymous]

Why did I know this was @Jenuno01‘s post just by reading the title? lol

I would all but guarantee that this is not an actual lawsuit but a letter sent out pretending that you were going to be sued to get your attention…worked, didn't it?

P.S. if you really paid it, check your credit reports (all three to ensure it's not listed on those). Make them send you an apology letter in writting declaring that this issue is dead and that your debt has been satisifed. Once you get that letter, put it and all of your backup into a file and into a safe deposit box or safe. These things have a way of coming back around…sometimes the wrong backup file is loaded or the doctor farms out the collection accounts to a different collection agency who decides to see if they can find old people or suckers who will pay again just by threatening them. Keep this FOREVER.

[jenuno01]

Thanks everyone for the feedback!

@CPAPending Excellent come back! LOL!!!! – Thank you for the advice! Definitely worked to get my attention and freak me out..made me feel like a criminal.

@Just Plain – Great Info. Thanks!

@Sandra – I don't really know if it was legit or not. It was hand-delivered to my house by the Sheriff. That made it seem much more scarier… and seems like it would real?

@bnrhiton & @mrs300 thanks ladies!

Class of 2012

[MeaDebitum]

@Jeff

https://www.credit.com/products/debt/Collections-Crash-Course.jsp

https://www.equifax.com/answers/request-free-credit-report/en_cp

[Anonymous]

😉 I couldn't help myself.

[The Dingo]

@jenuno01

Delivery by law enforcement sounds like you were indeed served…does it give a court date?

The collections “industry” are notorious as dirt bags…They have a terrible reputation for going after people with a similar name who don't even have a debt…and you have to be careful, I've heard stories of people who were out of the statute of limitations period for some indiscretion of their youth and then paid a small amount on an old debt and BAZINGA ! The whole thing plus interest and fees comes back to life with a whole new re-start on the salutatory period.

Everyone should drop by the Clark Howard web site (clarkhoward.com)

If you're not familiar: Clark Howard is a consumer advocate and has had a radio and TV show for years covering advice from investments to retirement and how not to get ripped off…He's got quite a few things on his web page and forums about dealing with the dirt bag collectors.

I myself have never been on the receiving end, but I understand the relatively recent consumer protection laws help reduce their harassment.

Sounds like jenuno01 needs an attorney given the summons was received…But on the other hand, it's surprising they would go through all the hassle of filings and court costs over a relatively small amount.

Best of luck jenuno01, and check the Clark Howard site for his “drop dead letter” if they begin harassing you.

[Author]

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