Consumer complaint received 2022-04-06
Product: Debt collection — Medical debt
Issue: Took or threatened to take negative or legal action — Threatened or suggested your credit would be damaged
Company: ARC Management Group, LLC (TN)

ARC Management Group ( collection agency ) appeared on my credit report in XXXX, 2022 as a collection in the amount of {$1400.00}. I had never received correspondence from this company before and was unaware of what the debt was for. After they validated the debt, per my request, I reached out to them on XX/XX/2022 to find out the full balance so that I could pay the debt. A rep. named XXXX gave me the case number and explained that once the debt was paid in full, they would remove the item from my credit report. She asked me to call back when I was ready to pay and pay by phone. 

Later in the day, when I was able to get the card to make the payment from, I discovered that having the case number, I found that I was able to go online and pay. I thought paying online would be easier than trying to get back in touch with the rep, as I knew she works on the phone and it may not be easy to reach her again.

On the website, there were 4 payment options 1. Pay in Full 2. Make a payment - Customize the amount you would like to pay 3. Installment plans - Set up a payment plan from 11 different options 4. Negotiator - Submit an offer and create your own custom plan I chose the option to pay in full. The Pay in Full option reflected a discount of 25 % and a total of {$1000.00}. I proceeded with the Pay in Full option and paid the account. The discount was automatically applied, no action was taken on my part to apply the discount. 

Today, XXXX called me angry that I did not call her back to make the payment and advised me that since I paid online and didn't pay by phone to her that the derogatory information would remain on my credit report for 7 years. She also advised me that I still owe them {$360.00} and unless I pay that, the debt is not considered paid. 

I asked for her supervisor. she transferred me to another rep, who advised me that by paying online, I settled the debt, I did not pay the debt in full. I questioned why the button I clicked on the website said Pay in Full. She said she did not know but that was not the terminology they use in their office. When a customer pays online, choosing the pay in full option and taking the discount, as far as they are concerned, the customer did a settlement. I asked why the website did not inform me that I was settling the debt and notify me that there would be consequences, as in the derogatory information would remain on my credit report. 

She told me that the credit report would say the debt was settled. I asked again where the terms settlement or settle were stated on the website where I made the payment. She said she did not know, she has never seen the payment dashboard on the website, but as far as she was concerned I didn't pay my debt, I settled it and she would issue a letter stating that and ensure my credit report states I settled my debt, not paid it. 

She said there are laws that permit them to call the discount a settlement and treat it as such, they have done nothing wrong. I would not give them the {$360.00} because I did not know if what she was telling me was legitimate. 

A company should not offer a customer a discount to pay in full, refer to the payment method as paying in full, then tell the customer they did not pay in full and threaten them with derogatory credit report information to try and extort more money from them. 

Had I known I was not truly receiving a discount, I would not have paid because I did not have {$1400.00}. I did have enough to pay after the discount though. That is why I proceeded with the payment. Then I found out I was mislead and my credit is still ruined because they refuse to remove the derogatory remark. They mislead me into making that payment by telling me on the website it was a discount. Then, on the phone the next day, they denied it was a discount and told me I settled my debt. I never agreed to any kind of a settlement agreement with this company.