Medical Collection after 4 years?

[MDG099]

Here's the scoop:

I was in a car accident in 2006 in Hawaii. I was unaware that there were different charges from different parts of the hospital because that was the first accident I had ever been in. Well, what happened was there was a bill for the hospital as well as the ambulance, and who knows what else. Well, last year I paid off the ambulance bill (I made payment arrangements with them for about $30/month) which I thought included the entire bill for the process, including the hospital stay. I never received ANY notice from  CA or the hospital telling me im delinquent. Not a phone call, email, letter, postcard, smoke signal.....nothing!

When I called the CA, they said they had a record of me calling the hospital in jan 2007 to give updated  address information from when I moved, but I still never received anything from them. She said, "Well I have _______ address on file." I said, "Yes that was my address but it was an apartment and you didn't say an apartment number." She said, "Oh, well they must've made a mistake and not wrote down the apartment number." And, I know I would not have given my address without an apartment number.

Well, I just checked my credit report today and there's a collection for $1300.  Well, the lady ended up telling me that they can call the hospital and try to get it reduced if it can be paid in full. I said I can pay $800-$850 in full within 30 days if it's taken off all 3 of my credit reports.

My question:

Is there a statue of limitations of collections?

How do I confirm with the collection agency that the collection will be TOTALLY removed from my CR's?

And is there anything else I should be aware of here? It seems kinds suspicious to me.

[Anonymous]

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@MDG099 wrote:

Here's the scoop:

I was in a car accident in 2006 in Hawaii. I was unaware that there were different charges from different parts of the hospital because that was the first accident I had ever been in. Well, what happened was there was a bill for the hospital as well as the ambulance, and who knows what else. Well, last year I paid off the ambulance bill (I made payment arrangements with them for about $30/month) which I thought included the entire bill for the process, including the hospital stay. I never received ANY notice from  CA or the hospital telling me im delinquent. Not a phone call, email, letter, postcard, smoke signal.....nothing!

When I called the CA, they said they had a record of me calling the hospital in jan 2007 to give updated  address information from when I moved, but I still never received anything from them. She said, "Well I have _______ address on file." I said, "Yes that was my address but it was an apartment and you didn't say an apartment number." She said, "Oh, well they must've made a mistake and not wrote down the apartment number." And, I know I would not have given my address without an apartment number.

Well, I just checked my credit report today and there's a collection for $1300.  Well, the lady ended up telling me that they can call the hospital and try to get it reduced if it can be paid in full. I said I can pay $800-$850 in full within 30 days if it's taken off all 3 of my credit reports.

My question:

Is there a statue of limitations of collections?

How do I confirm with the collection agency that the collection will be TOTALLY removed from my CR's?

And is there anything else I should be aware of here? It seems kinds suspicious to me.

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Not sure about medical debt, but for ordinary consumer debt:

1.  There is no SOL for collections.  Normally they can attempt to collect for light years until the debt is paid.

2.  I would get them to give you written confirmation of any agreement you reach with them.

3.  I would also insist on a signed and duly notarized General Release once you pay them.

[LIGHTNIN]

My question:

Is there a statue of limitations of collections?

The SOL for Hawaii is 6yrs from the date of medical services.After the 6years,it's considered past SOL,an OC or a CA can still try

to collect (key word TRY) but you can use Past SOL as a defense if summons to court.

How do I confirm with the collection agency that the collection will be TOTALLY removed from my CR's?

Do a PFD letter, or if the OC still owns the debt consider paying the OC.

And is there anything else I should be aware of here? It seems kinds suspicious to me.

Never talk to a CA, do all communication in writing.

[MDG099]

How do I get it in writing?

I just talked to the CA today and they said that they "might" be able to remove the collection from my report. 

And if this hospital already forwarded the bill to collections wouldn't that mean that collections owns it now? When I called the hospital and the CA they said I can pay either the CA or hospital. It's up to me, but if I pay the CA the removal of the collection from my CR will be quicker (if they decide to do so).

[RobertEG]

A CA wont, and is not compelled to, tell you when items will be deleted from your CR.  Deleltion from your credit reporting is charged, under FCRA 605(a), as the responsibility of the CRAs, not the CA

What the CA is responsible for is the accurate reporting of the DOFD on the OC account that the CRA needs to then determine removal from your credit reporting.

That reporting of DOFD is mandated by FCRA 623(a)(5)(A), which, in order for the CRA to have an accurate date for determining the "drop off" date, requires a CA to provide, within 90-days of reportiing of any CA, the DOFD on the OC account.  Then the CRA have a date to use.  But, of course, you have no way of knowing if the CA has complied with FCRA 623(a)(5)(A), and even if they did. whether the DOFD they reported was accurate.  The CRA can only go by what is reported by the CA.

I am sorry for being so technical, but enforcement of the requriements of CR drop off are necessarily technical, once you start challenging them.

My best advise to you, if you want to really see the date that the CRA should be using to calculate CR drop, is to send the CRA the following letter:

"This is not a disptue of anything, so pleast do not treat this as a dipute..  It is a statutory request only for information, under FCRA 609(a)(1).,

"This is a written request, under the provisons of FCRA 609(a)(1), for "all information in the consumer's (my) credit file at the time of the request" as it relates to the FCRA Compliance Date/Date of First Delinquency on the original creditor account (OC account info) that was reprorted to my credit file by the named original creditor. 

"This date should be readily retrievable as being reported in the original creditor account under base segment, field code 25 of tteir reporting to you.

"in addition to the above identified DOFD reported by the original creditor, a debt collector, (identifying CO info) has additionally reported a collecton account to your credit reporting agency.  In doing so, they were requried, under FCRA 623(a)(5)(A),  to have reported to you, within 90-days of their reporting of their collection account to you, their determination of the DOFD that they assert controls their collection activity.  I request all information on what they did, or did not, report.

"In summary, my request is simple.  I request two dates of information from my credit file, as detailed above.  First, any FCRA Compliance Date/DOFD reported by the original creditor, and second, the requried DOFD reported by the debt collection in compliance with FCRA 623(a)(5)(A) upon their reporting of a collection to my credit file. Two separate dates.

"I recognize that this request is not free of charge.  I thus remit, in compliance with FCRA 612(f), the statutory fee of $10.5 0 to cover your expense. Your [prompt reply is earnestly requested."

.

[MDG099]

UPDATE

So I just got off the phone with the general manager of the business office at the hospital. He said, "I will not contact the credit bureaus until the debt is paid." I said, "Okay, I have no problem paying the debt, but is it possible for you to send me a letter stating the collection will be removed from my CR  once you receive payment." He said, "Yes, I can do that."

So, we will see.. It was my thought that once the debt went to collections the original organization was no longer involved with the debt. He informed me that that was incorrect, he said, "I have them find you to pay the debt, but the debt it still registered in our system." or something like that. I'm hoping he is truthful, and sends a letter stating what he said, cause I just want to get this paid and off my credit report NOW!

[guiness56]

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@MDG099 wrote:

UPDATE

So I just got off the phone with the general manager of the business office at the hospital. He said, "I will not contact the credit bureaus until the debt is paid." I said, "Okay, I have no problem paying the debt, but is it possible for you to send me a letter stating the collection will be removed from my CR  once you receive payment." He said, "Yes, I can do that."

So, we will see.. It was my thought that once the debt went to collections the original organization was no longer involved with the debt. He informed me that that was incorrect, he said, "I have them find you to pay the debt, but the debt it still registered in our system." or something like that. I'm hoping he is truthful, and sends a letter stating what he said, cause I just want to get this paid and off my credit report NOW!

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Debts are either assigned or sold to the CA.  If they are sold the OC legally cannot collect money for the debt.  If it is just assigned, then they can accept money and call back the account from the CA.

The OC cannot make the CA remove the account from the CR. ( The OC needs to recall the account).     It works vice versa also.  If you pay the CA and they delete, it does not make the OC account go away.  You would need to deal with the OC for that.

[MDG099]

So, just to make sure I understand correctly....

The OC has to "recall" the account and it will be TOTALLY removed from my CR?

[MarineVietVet]

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@MDG099 wrote:

So, just to make sure I understand correctly....

The OC has to "recall" the account and it will be TOTALLY removed from my CR?

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No negative is automatically removed just because it is paid. If the OC has only assigned the account and not sold it they might agree to accept payment. But you'll still need to get them to say in writing they will get this removed from your reports. Even that though will not compel the CA to also remove although in my experience they deleted without me asking  because it was not in their interest and they had nothing to gain by continued reporting.

If the CA does not delete on their own then you will have to deal with them separately from the OC and make sure you also get a written agreement from the CA.

From a BK years ago to:

9/09 EX pulled by lender 802
3/10 EQ- 800
4/10 TU -772

You can do the same thing with hard work

Credit Scoring 101
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Frequently Requested Threads
Whats In Your FICO Score

[guiness56]

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@MarineVietVet wrote:

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@MDG099 wrote:

So, just to make sure I understand correctly....

The OC has to "recall" the account and it will be TOTALLY removed from my CR?

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No negative is automatically removed just because it is paid. If the OC has only assigned the account and not sold it they might agree to accept payment. But you'll still need to get them to say in writing they will get this removed from your reports. Even that though will not compel the CA to also remove although in my experience they deleted without me asking  because it was not in their interest and they had nothing to gain by continued reporting.

If the CA does not delete on their own then you will have to deal with them separately from the OC and make sure you also get a written agreement from the CA.

From a BK years ago to:

9/09 EX pulled by lender 802
3/10 EQ- 800
4/10 TU -772

You can do the same thing with hard work

Credit Scoring 101
Common Abbreviations
Frequently Requested Threads
Whats In Your FICO Score

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The OP was asking if the OC recalls the account from the CA will the CA account be gone from the CR.   Yes, the CA will have to delete if they no longer have the account in their office.