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Is it legal for a service provider (hospital) to apply payments

 
INFOLAWYER's Avatar
  • Answered by:INFOLAWYER
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Customer Question

Is it legal for a service provider (hospital) to apply payments made for a specific invoice/account to a different invoice/account for the same patient or family without prior approval? The check in question had the invoice/account numbers in the memo field of the check.

 

Optional Information:
State/Country of Question: New Jersey

Already Tried:
complaining to the CFO of the hospital--

Submitted: 1025 days and 15 hours ago.
Category: Legal
Value: $18
Status: CLOSED
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Expert:  INFOLAWYER replied 1025 days and 15 hours ago.

The creditor need not apply it to the invoice the debtor wants it applied to unless both sides agree otherwise.   

Customer replied 1025 days and 15 hours ago.

what constitutes "agreed" in this case--If I noted a specific account/invoice number, I am assuming that that is where the payment will be applied. It fels like the hospital is making a unilateral decision to apply it as it chooses, without notifying me that it is doing so. It has totally screwed up my records and resulted in a collection agency dunning me for payments I did not know were due.

Accepted Answer

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Expert:  INFOLAWYER replied 1025 days and 15 hours ago.

You would need a policy from the hospital or something in writing from them in which they agree to apply payment as payor wishes. This would be rare.   

Expert TypeAttorney
Pos. Feedback: 97.3 %
Accepts: 16799
Answered: 7/31/2009

Experience: Licensed attorney helping individuals and businesses

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