HIPAA compliance is getting more complicated, and more essential. Is your A/R management or collection agency doing anything to protect you from violations of HIPAA, FDCPA, HITECH, and TCPA? If not, you may be liable for drastic penalties.
HIPAA: How to protect yourself and your practice | Medical Economics.
ACA (American Collectors Association) International seeks to dispel commonly held myths about the credit and collections industry. Today more than 30 million consumers have delinquent or defaulted accounts under collection, averaging $1,400 each.
“Repayment of consumer debt is the lifeblood of America’s credit-based system and vitally important to the national and state economies,” ACA International Chief Executive Officer Pat Morris said. “It helps ensure that affordable credit is available, goods and services remain affordable, sustains jobs and supports keeping taxes low.”
As an industry, third-party debt collectors help employ more than 300,000 people, pay nearly $2 billion in federal, state and local taxes, donate $85 million and volunteer 650,000 hours to charitable organizations in local communities. “Whether a small town hospital, business or a city struggling to recover taxpayer owed dollars, organizations large and small rely on the recovery of rightfully owed consumer debt,” Morris said.
Myth 1: Avoiding a Debt Collector Makes the Debt Go Away. Consumers who ask debt collectors to stop contact or choose not to respond to calls or letters often mistakenly believe it means their debt has been eliminated. Avoiding contact will not erase a debt. Instead, consumers should communicate with collectors to discuss the account, verify its accuracy and work on a plan for resolution. If consumers don’t owe the debt, communicating with collectors can help put a stop to calls or letters.
Myth 2: Consumers Don’t Have Rights in the Recovery of Past Due Accounts. The collection of consumer debt is one of the most heavily regulated industries in the United States. Consumers have important rights under a number of federal and state laws. For more information about what to do if contacted by a debt collector please visit http://www.askdoctordebt.org.
Myth 3: All Debt Collectors are Bad. Just as “all consumers” aren’t the same, neither are all debt collectors. Most are committed to professionalism, training and customer service. When it comes to the “bad guys,” we want to put them out of business just as consumers do. ACA International and its members continue to work with state and federal policymakers, regulators, courts and attorneys general to comply with the law and hold accountable those who do not.
Myth 4: It is Boom Time for Debt Collectors. It’s no secret that consumers have struggled financially in the current economy. Despite an increase in defaults and delinquency, the inability of consumers to repay rightfully owed debts trickles down to those charged with their recovery.
© 2012 ACA International. All Rights Reserved. Reprinted with the express written permission of ACA International
Entrepreneurs, specialists and CEO’s who operate companies did not open their respective businesses to collect on past due accounts. Each started their business to provide a good or service to fill a need. Often, there is not sufficient time, resources or understanding of the best way to collect on past due payments. Many wonder:
As a result of unanswered questions, lack of processes and time, many debts go unpaid and ultimately factor into business failure. Company owners can lose traction while trying to split time between managing a shortfall of cash flow and collecting on past due payments while also attempting to concentrate on operating and growing their business. This is when companies should rely on the experts at collection agencies to recover delinquent accounts.
A company who must send their clients to collections no more wants to do so than the client wants their account sent. Unfortunately this step is sometimes necessary. When a business or company provides credit for goods or services they expect to, and should, receive payment. Multiply the effect of bad debts, late payments, slow paying and non paying client across thousands of businesses across the country and it is easy to see the negative impact this could have on the total economy.
A debt collection agency can assist in recovering debts and improving account receivables so business owners and operators can focus their energy and time on growing and running the business. Collection agencies possess the systems, resources and trained personal to improve cash flow. A good agency will have researched and studied consumer behavior and know the proper steps to take when dealing with the different types of debtors many companies and business encounter today.
When selecting a collection agency, make sure they are compliant with the varied and ever changing state and federal regulations that govern this highly-regulated industry. The wrong choice in a collection agency could result in large fines as a result of negligent actions with regard to state and federal regulations.
For more help in selecting the proper agency for you business, medical or dental practice, contact me. I’m happy to help.
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