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Charge Offs and Collections- New to this

tag
board_chick
New Member

Charge Offs and Collections- New to this

I am currently kicking myself hard.  I have perfect credit- score in the low 800s, but have just learned that an unpaid copay for medical visits is being sent to a collection agency and there is another one I fear may be sent if it hasn't been already.  These are for small amounts- one is $165 the other $90.  I kept getting bills and they kept just slipping my mind.  And at one pint I actually thought I'd paid one, but a review of my bank statement says otherwise.  Backstory is that these are both related to my prenatal care for my son who was born early via an emergency delivery in February.  I'm typically on top of stuff but new mom brain/fog led to just forgetting to deal with stuff.  A newborn coupled with a return to a demanding job also leads to unopened mail.  In going through mail last night I saw a notice that one bill would be sent to collection if I didn't contact them by 6/26.  I saw this notice on 6/28, so I assume this is on its way to a CA right now.  Thsi made me think of teh other overdue copay.  I haven't seen a similar letter from them, but understand they could send it to collection without informing me.

 

So what are my options and best next steps?

 

I plan to call the OCs on Monday to see if it's still possible to settle the debt with them.  If they have already gone to a CA, what should I do?  Do I wait for the CA to contact me?  What are the chances of success with a PFD for such small amount paid in full?

 

Will my credit be doubly affected by a charge off from teh OC and a collection report from the CA?

 

How much will this affect my credit score?

 

I have never had a late payment and as of last night my Experian score was 780.  I know that's not going to last now.  I'm really scared and didn't sleep at all last night- spent a lot of time reading forums here.

 

 Thanks in advance.

Message 1 of 5
4 REPLIES 4
DaBears
Senior Contributor

Re: Charge Offs and Collections- New to this

You can certainly call the OC and talk with them about payinf them in full. Find out if the accounts have been sold to a CA or if they are just collecting for the OC. Also the higher the credit score you have the harder you take a hit in points. Having a Charge Off on your credit report is a major derogatory and can affect your credit score signifcantly.  Best of luck!!!

 

 

DaBears

Message 2 of 5
rckstrscott
Valued Contributor

Re: Charge Offs and Collections- New to this


@board_chick wrote:

I am currently kicking myself hard.  I have perfect credit- score in the low 800s, but have just learned that an unpaid copay for medical visits is being sent to a collection agency and there is another one I fear may be sent if it hasn't been already.  These are for small amounts- one is $165 the other $90.  I kept getting bills and they kept just slipping my mind.  And at one pint I actually thought I'd paid one, but a review of my bank statement says otherwise.  Backstory is that these are both related to my prenatal care for my son who was born early via an emergency delivery in February.  I'm typically on top of stuff but new mom brain/fog led to just forgetting to deal with stuff.  A newborn coupled with a return to a demanding job also leads to unopened mail.  In going through mail last night I saw a notice that one bill would be sent to collection if I didn't contact them by 6/26.  I saw this notice on 6/28, so I assume this is on its way to a CA right now.  Thsi made me think of teh other overdue copay.  I haven't seen a similar letter from them, but understand they could send it to collection without informing me.

 

So what are my options and best next steps?

 

I plan to call the OCs on Monday to see if it's still possible to settle the debt with them.  If they have already gone to a CA, what should I do?  Do I wait for the CA to contact me?  What are the chances of success with a PFD for such small amount paid in full?

 

Will my credit be doubly affected by a charge off from teh OC and a collection report from the CA?

 

How much will this affect my credit score?

 

I have never had a late payment and as of last night my Experian score was 780.  I know that's not going to last now.  I'm really scared and didn't sleep at all last night- spent a lot of time reading forums here.

 

 Thanks in advance.


DaBears is a wise individual. This adivice is solid. I am going to interject my thoughts.

 

Listen, here is the bottom line. It hasn't impacted your score yet and it is not on your credit report. You need to pay the debt. Just because they said 6/26 doesn't mean it is being sent to collection on the 27th. They might never send it, they might send it in 2 weeks, they might send it in 2 months. They might have send it 2 months ago. What is done is done. 

 

Call them, pay it monday. Heck, pay it today if you can. If they DID already send it to collections, then ask them to kindly recall it since you are paying them. Medical debt is rarely sold, it is often just assigned. If the collection company hasn't started collecting on it, and its still with the original creditor, the odds they will report it are slim to none. OC's, medical related that is, hardly ever report this stuff. That is why they hire colleciton companies.

 

Don't lose sleep over this. If for some reason it hits and you take a credit score hit, there are a myriad of ways to remove it later on down the line, if it comes to that. If you pay it ASAP, I have all the confidence you will maintain your 780+ scores

 

 

 

-scott

Starting FICO Score: October 2010: TU 498 | EQ: 502
Current FICO Scores:: May 2022: TU: 784 | EQ: 770 | EX: 790
Message 3 of 5
board_chick
New Member

Re: Charge Offs and Collections- New to this

Thank you for the feedback.  I may be back Monday with more questions depending on how things go.

Message 4 of 5
DaBears
Senior Contributor

Re: Charge Offs and Collections- New to this

We look forward to giving you more advise!!!!

Message 5 of 5
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