If a company known as Designed Receivable Solutions has contacted you, or if a collection account from the company has been placed on your credit report, it’s most likely an attempt to collect an outstanding healthcare-related obligation.
If you believe the collection to be invalid, you may be tempted to ignore it. But that’s probably the worst approach you can take.
Collection agencies don’t simply go away because you ignore them. Like Designed Receivable Solutions, some may increase the collection balance by adding interest to the outstanding debt.
In other cases, a collection account can be converted to a judgment. This is more likely to happen if the claimed balance owed is fairly large, like several thousand dollars.
If you’re faced with a collection situation from Designed Receivable Solutions, the best course of action is to respond as quickly as possible.
That doesn’t necessarily mean you’re acknowledging responsibility for the debt. But you should attempt to resolve the issue, even if you don’t think the debt is legitimately yours.
In this guide, we are going to present several strategies for dealing with Designed Receivable Solutions.
If you don’t feel you can make the effort successfully, or if you are trying and not making progress, we will also recommend sources of professional help that can take over the job.
About Designed Receivable Solutions
Designed Receivable Solutions Inc. was launched in 2001 and is based in Cypress, California.
The company describes itself as a provider of “custom-designed A/R (Accounts Receivable) solutions,” which loosely translates to a collection agency.
It’s a small company, reported by the Better Business Bureau as a sole proprietorship.
The owner, Daniel Eder, serves as both principal and customer contact person. Though it does appear there are other employees.
What Debts Does Designed Receivable Solutions Collect?
Based on the information provided on their website and through the BBB, Designed Receivable Solutions collects exclusively for the healthcare industry.
This includes both hospitals and individual physicians.
The company provides a front-line collection of accounts receivable for medical practices as well as third-party pre-collection recovery and primary and secondary bad debt recovery.
Is Designed Receivable Solutions Legitimate?
Designed Receivable Solutions is a legitimate debt collection agency with a Better Business Bureau rating of “A-”.
This is the third-highest rating on a scale of A+ to F.
The BBB reports 27 complaints against the company within the past three years. All have been answered by the company, and four have been resolved in the consumer’s favor.
Complaints include excessive interest charges, allegations of attempting to collect on fraudulent claims, and violations of the Federal Collection Practices Act (FCPA).
There are also complaints regarding the failure to provide proper debt validation and inaccurate credit reporting.
If you are overwhelmed by dealing with negative entries on your credit report,
we suggest you ask a professional credit repair company for help.
Before You Deal with Designed Receivable Solutions
We’re going to present specific strategies for dealing with Designed Receivable Solutions.
But before we do, there are four rules you should be aware of in dealing with any collection agency.
1. Don’t deal with collection agencies by phone
Collection agencies prefer to deal with consumers by phone, which is the very reason why you shouldn’t. The reason they like it is that it gives them all the advantages in the negotiation process.
First, the collection agent is experienced in dealing with consumers. You’re probably not familiar with dealing with collection agents; they’re something of a different breed.
Their job is to get you to pay the debt by practically any means possible.
In the process, they will attempt to get incriminating information against you. This will provide them additional evidence the debt is legitimately yours.
They’ll also try to get you to commit to making payments. Because they know that if you can’t, your nonpayment can be used as evidence against you in a lawsuit.
While all this is happening, the collection agency will conveniently record all phone conversations. That means they’ll have all the records, and you’ll have nothing.
The phone recordings can be used as evidence against you, much the way written correspondence can.
But there’s a much greater likelihood you’ll incriminate yourself in a phone call—under pressure from the collection agent—than you will in a carefully written letter to the company.
Make sure your first phone call to or from Designed Receivable Solutions is the last.
2. All contact with Designed Receivable Solutions should be in writing
This is the preferred way to deal with collection agencies, and you have a right to request contact only by written correspondence under federal law.
This strategy gives you written evidence of all correspondence between you and the collection agency.
It also avoids the likelihood you’ll disclose information or make promises that can be held against you.
That’s because such representations are more easily edited out of a letter before mailing, which is an option that doesn’t exist in a phone conversation.
Just as important, insisting on written correspondence will put an end to harassing phone calls at home and at work.
If you never dealt with a collection agency before, you probably aren’t aware that the harassment can reach a point where you’re afraid to answer your phone, even if you think it’s a legitimate call. You’ll need to put a stop to that as early in the process as possible.
When using written correspondence, keep your letters concise. You should provide only minimal information, while requesting as much information as possible from the company.
Be sure that all correspondence is sent by certified mail, return receipt requested. That will prove not only that you sent your letters, but also that they were received by the collection agency.
Keep all correspondence in a dedicated file folder, which may be your best defense in a lawsuit.
3. Never promise to make a payment unless you’re willing and able to make it
Make a promise to pay a collection agency—and fail to deliver—and a collection agency can use that against you as evidence in a lawsuit.
Never, ever, make a promise to pay a collection agency unless you have the funds to make the payment, and fully intend to send it.
Anything less will lead to bad outcomes.
4. Familiarize yourself with your rights under federal law
The Fair Debt Collection Practices Act (FDCPA) provides consumers with certain protections from collection agency abuses.
You can learn these protections by reading the Debt Collection FAQs provided by the Federal Trade Commission (FTC).
Just knowing your rights under federal law may give you the upper hand when a collection agency starts getting ugly.
Get Professional Help in Dealing with Designed Receivable Solutions
It can be difficult and time-consuming to deal with collection agencies. So you would better serve your interests by getting professional help.
Or, you may attempt to deal with them on your own for a while and hit a point where you’re making no progress.
At that point, you can call in professional help to close the gap.
Take advantage of the services provided by a good credit repair company. They know how to work with collection agencies and can often have your credit profile improved in the process.
If Designed Receivable Solutions threatens you with legal action, you’ll need to get attorney representation.
Lexington Law specializes in credit law, and can often keep a collection account from turning into a lawsuit and ultimately a judgment.
Specific Strategies for Dealing with Designed Receivable Solutions
Now let’s get on to specific strategies for dealing with Designed Receivable Solutions.
1. Demand that Designed Receivable Solutions Provide a Debt Validation Letter
As early in the process as possible, you’ll need to demand Designed Receivable Solutions provide you with a debt validation letter.
It’s a requirement under federal law, and it forces the collection agency to provide you with written evidence of the information surrounding the collection.
The debt validation letter should include information about the debt and your liability for it.
This includes the amount of the debt, the name of the original creditor, the date the debt went into collection, the full amount of the debt, what the debt was for, and information that clearly connects you to the obligation.
When you receive the debt validation letter, study the details carefully.
Consider that it may be a case of mistaken identity or that the collection agency may be attempting to collect a debt that was already paid.
If you believe either to be the case, and you have documentation to prove your point, you can demand Designed Receivable Solutions stop the collection effort against you.
In addition, you can have them remove the negative information from your credit reports.
If the collection agency cooperates—as they should—it will be dropped, and your credit reports will be corrected. But cooperation is not always the case.
We’ll provide alternative strategies going forward.
2. Request a Goodwill Deletion
Let’s say you know the collection agency’s claim against you is correct. And you either have paid the debt already, or intend to pay in full now.
You may be able to get the collection removed from your credit reports by requesting a goodwill deletion.
You start the process by sending Designed Receivable Solutions a goodwill letter. In it, you’ll request that the account be deleted from your credit report as an act of goodwill.
So why would the collection agency remove the account from your credit reports based on your request?
In your letter, you’ll need to provide a compelling explanation that the reason the account went into collection was due to circumstances beyond your control.
That can include major life events like a period of extended illness, a prolonged time of unemployment, the death of a loved one, or the onset of a major medical event.
Providing written documentation as evidence of your claim will make your request stronger.
As with all strategies for dealing with collection agencies, this one is not guaranteed to work either. But if you have a legitimate reason why the debt went into collection, it’s definitely worth a try.
3. Offer a “Pay-for-Delete” Agreement
This strategy is similar to the goodwill deletion request. However, you will not offer the explanation that the collection was the result of extenuating circumstances.
Instead, you’re proposing to pay the debt in exchange for the collection agency removing the entry from your credit reports.
You’ll send Designed Receivable Solutions a pay-for-delete letter, offering to make full payment on the account in exchange for the collection agency removing the collection account from your credit reports.
Since collection agencies exist solely to get consumers to pay their debt, they may agree to the arrangement. Especially since it holds the potential to collect the full amount of the debt.
That said, there are two important points to be made about pay-for-delete. First, it will only work on an outstanding debt.
If the debt has already been paid, you’ll have no bargaining position. Second, you’ll need to propose making full payment of the debt.
Attempting to pay less than the full amount due in exchange for deleting the collection from your credit report is too much to ask of any collection agency.
If the agency agrees to the arrangement, request confirmation in writing before sending a payment.
But even if they do provide a letter, they may accept your payment and still not remove the collection account from your credit reports.
If that turns out to be the case, you’ll have no recourse against them. Unfortunately, pay-for-delete arrangements are not legally enforceable.
4. Demand Deletion if Designed Receivable Solutions Can’t Fully Validate the Debt
In Strategy #1, we suggested information provided in the debt validation letter might be used to prove either mistaken identity or an attempt to collect on a debt that’s already been paid.
But here, we’re looking at Designed Receivable Solutions either providing an incomplete debt validation letter, or failing to provide one at all.
Under federal law, if a collection agency does not provide a debt validation letter, or if it comes back incomplete, you’re entitled to dispute the debt.
You can also have both the collection effort and credit report entry deleted. You can demand this all from the collection agency.
Unfortunately, collection agencies routinely pursue debts without providing a debt validation letter, or providing one with incomplete information.
If that happens, you can dispute the debt with the three credit bureaus, who will respond to your request within 30 days of receipt of your request.
If they cannot fully validate the debt, the bureaus will remove the collection account from your credit report.
Once again, the collection agency may not agree. If they don’t, you may need to get professional help to settle the matter.
5. Settle the Debt for Less than the Full Amount Owed
This is another strategy you can use if you readily acknowledge you owe a debt.
It won’t remove the collection account from your credit report. But it will enable you to settle the account for less than the full amount due.
Meanwhile, a settled or paid collection account will be better for your credit score than an unpaid one.
Your credit score should increase by at least a few points after settling the debt.
You’ll need to put on your negotiator’s hat to make this work. The process starts by sending Designed Receivable Solutions a letter proposing to settle the debt for less than the full amount.
We recommend an initial offer of not more than 50% of the full balance. If the collection agency is willing to negotiate, they’ll counteroffer with a figure closer to the full amount.
You’ll respond by increasing your original offer, and eventually, you’ll meet somewhere in the middle.
Once you do, request Designed Receivable Solutions to acknowledge the settlement in writing. Include in your request that they will accept the reduced payment in full satisfaction of the entire debt.
Also, request that they’ll terminate collection efforts against you and that they’ll report the account as satisfied with all three credit bureaus.
Send no money until you receive this letter. If you send money before the letter comes in, the collection agency may accept your reduced payment as a partial payment.
And then they will continue to pursue you for the balance of the debt.