Debt Collection FAQs

I received a bill from a creditor that I believe has a mistake in it. How do I get it straightened out?

You have a right under the Fair Credit Billing Act to have your bill reviewed for possible billing errors. The legislature enacted the national Fair Credit Billing Act as part of the Truth in Lending Act (TILA), to ensure that people who use credit cards have a way to verify their credit balance in the event of a billing error. The TILA establishes a three-step procedure that you need to follow in order to dispute possible errors on your bill. This procedure only applies between you and your creditor (credit card company). It does not apply to a possible dispute you may have with a particular store where you used your credit card.

If you detect a billing error, you need to submit a written letter to the credit card company within 60 days of the date you received your billing statement. In your letter, make sure you include your name, account number and a brief statement about the amount and nature of the error at issue. Even though your credit card company may have a toll-free number that you can contact in the event of errors, you should always follow up with a written letter as well. Remember to keep copies of all the documentation you send and receive in a safe place for your records.

The credit card company must send you an acknowledgment in the mail no later than 30 days after the company receives your letter regarding the error. The company will generally correct the error by the next billing date if the error was a result of the company’s miscalculations. Also, the company has either two billing cycles or 90 days, whichever comes first, to explain the billing charge to you. The company is also required to provide you with proof of the charge if no error is detected.

During the time the company is investigating your claim, you are free of any responsibility for payment of the charge in dispute. In addition, you are not liable for any of the interest that may accrue on the charge in dispute.

After the investigation is done, the company can either agree with your claim, or disagree. If the company agrees, it must correct your bill. If it does not agree, it must send you a written explanation.

As soon as the dispute is over, the company must notify you about how much money you owe as well as when your payment is due.

If the above procedures are not followed, the company may forfeit its right to collect on the debt in dispute. In addition, the company forfeits its right to get money from the debt’s finance charge, up to a maximum of $50.

If you have concerns that your billing errors are not being responded to, contact the New Hampshire Consumer Protection & Antitrust Bureau at:

NH Consumer Protection & Antitrust Bureau
(603) 271-3641 or (603) 271-3643
33 Capitol Street
Concord, NH 03301-6397

or contact the Consumer Financial Protection Bureau at:

Consumer Financial Protection Bureau 1-855-411-CFPB (2372)
P.O. Box 4503
Iowa City, IA 52244

For more information, please see:

• N.H. Rev. Stat. Ann. Ch. 358-A:1-13 – Regulation of Business Practices for Consumer Protection
• 15 U.S.C. §§ 1601, 1666 – Truth in Lending Act
• Elizabeth Dolan, New Hampshire Consumer’s Sourcebook, 65-67, 90 (2006). https://www.doj.nh.gov/citizens/consumer-protection-antitrust-bureau/nh-consumer-sourcebook
• https://consumer.ftc.gov/articles/using-credit-cards-and-disputing-charges

I am being billed by a doctor for the balance over and above what my Medicare and supplemental insurance will pay. I cannot afford to pay. What should I do?

Although Medicare will pay a portion of your health care costs, you may be responsible for a portion of the bill. Your share of the payment is called a co-payment. If you do not have supplemental insurance that covers the co-payment and you fail to pay the doctor for your share of the bill, you become indebted to the doctor as you would any other creditor. However, even though you will become responsible for paying the doctor, there are limitations on the amount the doctor may charge you.

Generally speaking, if the doctor participates in Medicare programs (s)he needs to follow Medicare guidelines. The guidelines do not permit the doctor to charge you more than the approved Medicare charge.

If your doctor does not participate in the Medicare programs, (s)he is not obligated to follow the same guidelines. Even if the doctor does not participate in the Medicare programs, the government places a cap on the amount of money the doctor can charge, for the protection of those who are on Medicare. This cap is called a “limiting charge.” The government allows the doctor to charge no more than 115% of the amount that is Medicare approved for that particular service. Thus, your doctor cannot bill you for more than 115% of the amount Medicare would cover.

For example, assume you receive medical services for which Medicare will pay $100. A doctor who does not participate in the Medicare program cannot charge you more than $115 for that particular service. After Medicare pays the $100, you are responsible for the rest (co-payment of $15). If you are being charged for more than 115% of the Medicare approved bill, your doctor will be subject to sanctions from the Centers for Medicare and Medicaid Services (CMS). If Medicare does not cover the bill and the bill does not exceed the cap charge, you will have to pay for the services.

For further information, please see:

• N.H. Rev. Stat. Ann. Ch. 415-F – Medicare Supplemental Insurance
• 42 U.S.C. §1395pp – Limitation on Liability Where Claims are Disallowed

My spouse died recently. All of our property was jointly owned and there was no probate proceeding. I am receiving medical bills. I did not authorize these charges. Am I responsible to pay these medical bills?

Yes, in New Hampshire, if your spouse received medical care that was medically necessary and your deceased spouse’s estate is unable to pay for such care. This is called the “Doctrine of Necessaries.”

You may not be responsible for the medical debts of your deceased spouse if you can show that the medical services your spouse received were unnecessary or against the will of your spouse. For example, if the hospital provided care to prolong the life of your spouse that exceeded the basic care needed to provide your spouse with comfort, you may not have to pay. In addition, if the hospital provided such services and you can show that your spouse did not wish to have his/her life prolonged, then you may not be responsible for the debt incurred as a result of such medical services.

If you cannot afford to pay for your deceased spouse’s medical bills, you should consider applying for Medicaid to see if your spouse qualified for Medicaid benefits. Medicaid will look back 90 days from the date of your application to determine if your spouse was eligible for Medicaid at the time when (s)he passed away. If your spouse was Medicaid eligible at the time of his/her death, you may be able to get Medicaid to pay for the medical bills.

For more information, please see:

• N.H. Rev. Stat. Ann. Ch. 546-A:2 – Uniform Civil Liability For Support
• St. Joseph Hosp. of Nashua v. Rizzo, 141 N.H. 9, 11-12 (1996).
• 42 U.S.C. § 1396a (a)(34) – State Plans for Medical Assistance
• 42 C.F.R. § 435.915 – Effective Date

Are my social security or private pension benefits subject to attachment and/or levy by my creditors?

Social Security and Veterans’ Benefits:

Social Security and Veterans’ benefits are not subject to attachment by most creditors. However, the federal government may access such benefits if you owe taxes, child support or alimony.

Private Pensions:

Under state law, income received from a retirement or pension plan is protected up to 50 times the minimum wage. Currently this amount is $362.50 per week.

Assets held in retirement and pension plans are fully exempt from attachment under state law. In addition, some private pensions are regulated by federal law and are protected from being attached by creditors. However, in order for a private pension to be covered by this federal protection, the pension must follow the guidelines set out in the Employee Retirement Income Security Act (ERISA). If the pension does comply with the guidelines of ERISA, these plans are considered “Qualified Plans.” While you are allowed to use a percentage of your retirement income to pay a bill, it is strictly voluntary by you and your creditors cannot access the money.

If you have any questions concerning a pension plan, contact The New England Pension Assistance Project:

The New England Pension Assistance Project 1-888-425-6067
https://www.umb.edu/pensionaction/

and/or:

Pension and Welfare Benefits Administration
(617) 565-9600
Boston Region Office
J.F.K. Federal Building
15 New Sudbury St., Room 575
Boston, MA 02114

Wages from Employment:

It is very difficult to garnish wages in New Hampshire. New Hampshire law, under the trustee process statute, protects weekly earnings up to 50 times the minimum wage. Currently this amount is $362.50 per week.

For more information, please see:

• N.H. Rev. Stat. Ann. Ch. 511:2 – Attachable Property and Exemptions
• N.H. Rev. Stat. Ann. Ch. 512:21 – Exemptions from Trustee Process
• N.H. Rev. Stat. Ann. Ch. 524:6-a, II – Periodic Payments of Judgments
• 38 U.S.C. § 5301 (a) – Nonassignability and Exempt Status of Benefits
• 29 U.S.C. § 1056 (d) ((1)-(3)) – Assignment or Alienation of Plan Benefits
• 42 U.S.C. § 1383 (a)(2)(B)(iii)(III) – Procedure for Payment of Benefit
• 42 U.S.C. § 407 – Assignment of Benefits
• 42 U.S.C. § 659(a) – Enforcement of Individual’s Legal Obligation to Provide Child Support or Alimony
• https://www.dol.gov/agencies/ebsa/laws-and-regulations/laws/erisa

Can my creditors force me to sell my home to pay my debts?

It depends. Currently, New Hampshire allows up to a $120,000 homestead exemption to a homeowner (this includes manufactured housing). If the home is owned by a married couple and jointly owned, each spouse can claim $120,000 each. This means that if a creditor obtains a judgment against you in court to repay a delinquent debt, the first $100,000 in equity in your home (or $240,000 if you are married) is exempt from attachment. If your home has equity less than the protected amount, this will prevent the creditor from forcing you to sell your home to pay off the judgment. However, if you have equity in excess of the exemption, you could be at risk of a forced sale.

For further information, please see:

• N.H. Rev. Stat. Ann. Ch. 480:1 – Homestead Rights
• 2015 N.H. Laws Ch. 57:1 (H.B. 147)

A bill collector keeps calling me about a bill I simply can’t afford to pay. What should I do?

You have the right to stop phone calls and other communication from debt collectors. The federal Fair Debt Collection Practices Act protects you from unwanted contact by debt collectors.

Debt collectors are not permitted to call you at unreasonable times. Generally, calls may be made only between 8 am and 9 pm, with limited exceptions. If you do not want debt collectors to contact you, inform them that you are protected under both federal and state law. The Federal law that regulates the collection of debts is called the Fair Debt Collection Practices Act (FDCPA), and the New Hampshire statute is titled Unfair, Deceptive or Unreasonable Collection Practices. Both statutes provide individuals with remedies, including monetary damages and reasonable attorney’s fees, in the event that the collection representative uses abusive tactics.

In a nutshell, it is illegal for debt collectors to use any unfair or deceptive collection practices. They cannot call and harass you continuously about the debt you owe. Debt collectors are not allowed to call you at work if you do not want them to. In addition, debt collectors cannot lie and misrepresent their identity in order to get you on the phone.

Request, over the phone, that the debt collector no longer contact you. Additionally, inform the debt collector that you will also be sending a written notification of your request. If you are represented by an attorney or credit counselor, you may request that any further communications be sent directly to them. Be sure to send your letter by certified mail, with return receipt, and to keep a copy for your own records. It is good practice to keep track of any unwanted communication, written or phone, that debt collectors have with you.

Even though you have the right to ask debt collectors to stop contacting you, you still owe the debt. Debt collectors may still sue to collect your unpaid debt.

If you have any concerns about a debt collection agency in New Hampshire, please contact the New Hampshire Consumer Protection & Antitrust Bureau at:

NH Consumer Protection & Antitrust Bureau
(603) 271-3641 or (603) 271-3643
33 Capitol Street
Concord, NH 03301-6397

or contact the Consumer Financial Protection Bureau for out of State debt collection issues at:

Consumer Financial Protection Bureau 1-855-411-CFPB (2372)
P.O. Box 4503
Iowa City, IA 52244

For more information, please see:

• N.H. Rev. Stat. Ann. Ch. 358-C – Unfair, Deceptive or Unreasonable Collection Practices
• 15 U.S.C. § 1692-1692o – Debt Collection Practices
• 16 C.F.R. § 444 – Federal Trade Commission Credit Practices
• Elizabeth Dolan, New Hampshire Consumer’s Sourcebook, 71-82 (2006) at https://www.doj.nh.gov/citizens/consumer-protection-antitrust-bureau/nh-consumer-sourcebook
• https://www.ftc.gov/legal-library/browse/rules/fair-debt-collection-practices-act-text

I just got a letter in the mail saying that I owe money on my federal student loan. Do I have to pay it?

It depends. You can get your loan discharged (you won’t have to pay) if you fall into one of the following categories:

1. If you are a veteran and the Secretary of Veteran’s Affairs determined that you are unemployable because of a service-related condition.
2. If you receive Social Security Disability Insurance or Supplemental Security Income you only need to submit a Social Security Administration notice of award of these benefits.
3. If you are totally and permanently disabled, you can submit a certification from your doctor that you are “unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that… has lasted… or is expected to last for a continuous period of not less than five years.” After you get the certification, you have 90 days to apply for a loan discharge.

If you do not fit into one of the above categories, it is unlikely you can get your loan discharged.

If you do fit into one of these categories, the first thing you should do is contact Nelnet and let them know you are planning to ask that your loans be discharged. Contact Nelnet at 1-888-303-7818 or email at . Nelnet will provide the information you need to apply for a discharge, assist in identifying the loans that can be discharged, and contact the loan providers to request that collection activity stop for up to 120 days.

To apply for a discharge, you must fill out an application form which can be found at https://studentaid.gov/manage-loans/forgiveness-cancellation/disability-discharge. If you do not have access to a computer, you can ask Nelnet to send you the paper application for you to complete. Once you have filled out the application and attached the required documentation (see above), you should mail it by certified mail, return receipt requested, to (be sure to keep a complete copy):

U.S. Department of Education
P.O. Box 87130
Lincoln, NE 68501-7130

Nelnet will review the application and then send it to the Department of Education for approval. If your application is denied, you can appeal the decision.

For more information, please see:

• 20 U.S.C. §1087(a)
• 34 C.F.R. §§ 674.61 (Perkins Loan), 682.402(c) (FFEL), 685.213 (Direct Loan)
• Consumer Financial Protection Bureau at https://www.consumerfinance.gov/paying-for-college/
• Student Loan Borrower Assistance at https://www.studentloanborrowerassistance.org/
• https://studentaid.gov/manage-loans/forgiveness-cancellation/disability-discharge