Has anyone been in this situation? CA. I have a client with a 50k+ ER bill that was sent to collections. The case settled and I sent a reduction request under the hospital lien act. They agreed to take their 1/3 from the settlement, but said they plan to pursue the remaining balance from the client directly. The remaining balance is about 20k. How can they do this? It’s seems so unethical but I can’t find any authority that says credit agencies cannot balance bill.

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Did client not have HI at time of the accident?

Unfortunately no 😞

The duty to pay under civil code 3045.1 is on the defendant, not you. Read the statute. There’s a whole notice requirement. I’ve challenged these and prevailed many times. If you’ve already received full payment for the settlement it’s not your problem. If they didn’t file a lien, then it’s a straight collection issue and you should be able to negotiate for the entire bill. I’ve also used lien negotiating companies to solve these kinds of problems.

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