senoj

Help,

Whilst in Canada on a GAP year - I realised that my travel insurance had run out - I hastily took out a policy with GO Travel Backpackers to cover myself. I unfortunately had a fall whilst hiking and ended up in hospital with fractures to vertebrae and foot. When somebody contacted my insurers whilst I was in hospital they were assured that all my bills would be covered, I also had a call from AXA insurance assuring me that I need not worry. I could have discharged myself after 1 day but with nowhere to go other than to friends I had made I stayed in hospital for six days until I received a call telling me that my insurance was invalid as I should have been in the UK at the time of taking out the policy.

I am safely back in the UK now - I can see that had I read all of the conditions and terms that on page 20 of a 27 page tightly spaced pdf there is a sentence to this affect. I have appealed to the insurers to no avail and am pursuing this through the Ombudsman but fear that the outcome will be negative.

I have now received a bill for $20,000 (£17,000) from the hospital. I am an unemployed graduate with student loans hanging over me and I have no way of repaying. I have spoken to the hospital authorities who will put this in the hands of a third party - who I fear might pursue me to the ends of the earth. I don't know where to go for advice. If I don't pay could I be arrested? Is the worst thing that could happen is I could never go back to Canada? Is there any agency in Canada or UK where I can get advice?

Has any body got any advice they can give me I am getting very anxious about my future.

zRichi

I doubt it'll affect your credit history (provided it doesn't get passed onto a UK debt chaser)
First thing to do would be to cease contact for a start. It's a lot harder to prove you actually received the letters of the situation.
If they've put it into the hands of a third party then likely it'll get sold off to a creditor in the UK.

If that happens you'll be chased to the ends of the UK for sure with a debt that size.
If I were you i'd move out then keep changing address every six months. If they manage to keep up with your movements then you may be able to offer them half the debt. Or pay it off in stupidly tiny amounts. It's unfortunate that Canada and the UK share a lot of creditors.

You should probably be seeking legal advice.
Good luck and don't let the b*stards get you down..

MarylandNed

I'm sure you know you made a series of mistakes - starting with not purchasing insurance to cover the entire GAP year. Don't worry though - you won't be arrested and I doubt it's going to affect your ability to visit Canada in the future.

You can continue to pursue the insurance company in the UK but the chances of success look slim to none - especially if it's clear that the policy was invalid because you were not in the UK at the time you purchased it.

I think your best bet is to talk to the hospital and explain the situation - go up through the hospital's chain of command as much as possible. If you encounter someone who appears inflexible, simply ask who their manager is and say you'll be writing a letter to that person. Your goal should be to make a deal with them for a greatly reduced medical bill (at least 50% reduction and hopefully more) and a reasonable monthly payment plan (preferably interest free) over a long period of time. Often hospitals will write off bad debts but $20,000 is a significant sum so I'm not sure how they feel about that much money. They may be more willing to make a deal if they realize it's going to be difficult for them to collect the money - as you are out of the country, umemployed and have other debts.

If you can't afford to even reach an agreement with the hospital, then the other alternative is to simply tell them that you can't pay and let them deal with it. They can talk about a "third party" all they like, but the collection agency is also going to have a very difficult time getting any money out of you. Your hope here would be that they'd see the futility of pursuing you and simply write it off as a bad debt.

I think it's a good idea to obtain advice. I'd probably start with the Citizens Advice Bureau in the UK. If they can't help, they should be able to point you in the right direction. You might need to consult with a lawyer if things don't work out as you hope.

Good luck!

shelley748

Important question- when the person took your order for the travel insurance, did you declare you were not in UK? If the answer is yes, then take it up with the insurance ombudsman. Always take someones name and reference/employee number when dealing with any company at any time, as well as the time and date of the call. You never know when it will come in handy later... I would pursue it via the Insurance Ombudsman.

shelley748

who was the person besides you who contacted the insurers while in hospital? Independent witness who can confirm that insurers by implication confirmed you had appropriate insurance and that you were covered?

dbd33

It will get passed along, it's twenty grand. I don't see that it's any different from running up a large Barclaycard bill in the UK, they will chase it forever and each letter ignored means more fees and interest tacked on. I think the only thing to do is to contact the hospital, explain the circumstances, and sign up to pay it off at a few quid a week for the rest of your life.

dbd33

The conversation would have been "got a policy with senoj's name on it?",
"Yes", "Thanks". It's a routine check, not a commitment by the insurer.

Oregon4now

So in your mind it not your fault that you did not take out proper insurance and that you used the Hospital as a Hotel for 6 days. I guess it is OK for the Canadian Tax payer to pick up your Tab right ?
Get off your Butt, get a job and start paying them back and hold yourself to being accountable for your poor decisions. Welcome to the real world Student
and stop expecting others to pay for your mistakes.

jerry brewer

Hi
When debt collectors turn up in the UK, it is apparently legal to offer them any money you have however small, i.e. 1 pound.
The collectors then have to legally take this back to the debt owner, he recalculates the money owed , the collectors return, you give them 1 pound the circle starts again etc, etc, etc.
This i was told by a person who worked as a debt collector in the UK.
apparently works with the UK tax man as well.
cheers
Jerry

in the woods

try to pay your bill. Why should you not pay for what you had just because its a hospital. The Canadian tax payer doesn't want to pay for your lack of organization same as the British tax payer doesn't want to pay for all those who get treated there but never pay for anything. lifes hard so time to get a job and start paying off your debts. Then when you have worked hard you can travel the world
also $20,000=about 13,000 pounds

Alan2005

If you are young (early 20's), get as much credit as you can and live the high life for a while. Then declare yourself bankrupt.

johnh009

That's about it. I have known people who have gone to debt counselling agencies who have managed to get their debts written off or greatly reduced. Not sure I agree with it but there it is. Someone else pays in the end.

iamthecreaturefromuranus

If Canadian law is the same as UK law then they cannot enforce a debt against a non-resident. If that's the case you can basically tell them to **** off.

Rob_999

This is a very good point. How (& when) did they find out you were in Canada when you purchased the insurance? Plus why wasn't that caught when they sold you the policy?

Also - sounds like you would have been eligible for medicare coverage? Which province were you in, and for how long and for what exact dates? If you were I believe coverage can be backdated for a certain time period if you make the payments, and thats going to be a lot cheaper than a $20k bill.