Can a hospital apply current payments to an old account even if the account number was written on the checks?

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Can a hospital apply current payments to an old account even if the account number was written on the checks?

Doesn’t the collection agency have to acknowledge current payments made to said account?

Asked on November 17, 2011 under Bankruptcy Law, Illinois

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

The creditor, not the debtor, decides how to apply payments. If a person owed money on an older account and/or for services previously rendered, the creditor may decide to apply an payments to that older debt, notwithstanding that the debtor wanted or indicated that they should be instead applied to a more recent debt.


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