Medical Debt from 03-06

[Anonymous]

I saw a couple posts like this but I am confused and hoping for some help.

I have a Dental debt from 2003 that I am confused on. 

It was originally <$200 but was a bad check and now with "treble" damages and fees is at $734 as the debt. It was then sent to collections and has been accruing interest since my last and only payment on it which was in 2006. It is now showing on my credit as $1500 at a collection company. It is reporting monthly as a collections account.

I called to settle the debt with the dentist in 2010 and they were willing to drop it to $800 and report it as paid. At that time I understood it wouldn't come off of my credit, just report as paid....and I didn't feel like $800 7 years later was good enough so I dropped the negotiation. (They were unwilling to delete-for-pay)

I know I am being stubborn but no one has made that kind of profits...I just can't get my mind around paying $800 for a $170 debt!! (I even told the dentist that, I asked him where he banks that he would make that much in profit from at $170 debt because I want to move my money there!)

I never heard from a collections agency or the dentist again.

I just checked my credit and it is showing up on Experian and Transunion. 

• At this point, will it fall off my credit in 2013?
• Do I need to pay this debt?
• Will I/Can I be sued for this debt? ( I live in CA)
• I saw someone say something about HIPPA. What does that mean exactly?
• This is the ONLY negative thing on my credit...and I just ran my report but didn't pay to get my FICO. Is it really hurting my credit that much?
• When something falls off your credit is it completely gone or does it just stop reporting?

This debt was accrued in 2003, and I made one payment (stupidly) in 2006. So, I am assuming the SOL started as of 2006. 

Any help is MUCH appreciated!

[RobertEG]

• At this point, will it fall off my credit in 2013?    
       A collection is excluded after 7 years plus 180 days from the date of first delinquency on the OC account.  You need to know the DOFD
• Do I need to pay this debt?
       Whether to pay is up to you.  Whether you are legally obligated to pay depends upon whether the statute of limitations for that type of debt has expired.
• Will I/Can I be sued for this debt? ( I live in CA)
        You need to determine the date of expiration of the debt under CA state law.
• I saw someone say something about HIPPA. What does that mean exactly?
      HIPAA is an interpretation of the privacy of medical information requirements under the HIPAA act.
      In a nutshell, the process asserts that medical information can be excluded after it is paid as no longer having a valid reason for retention.
• This is the ONLY negative thing on my credit...and I just ran my report but didn't pay to get my FICO. Is it really hurting my credit that much?
       Yes, its a major derog
• When something falls off your credit is it completely gone or does it just stop reporting?
      It is not completely gone.  It is retained in your credit file.  The debt collector can continue to report it, but the CRA is blocked from
      continued inclusion of the collection in any credit report they issue.  Under limited conditions, the "excluded" information could still be requested and received
      after its normal exclusion date, but those exceptions are rare.... basically only when you have applied for credit or insurance with a principal value of $150K or more,
      or for employment involving a salary of $75K or more.

[Anonymous]

Thank you so much for your help!

How do you find out what the DOFD is? Is it listed on my credit report?

 HERE IS WHAT IT SAYS: 

Status: Collection account. $1,596 past due as of Feb 2012.
Status Details: This account is scheduled to continue on record until Jun 2012.

Date Opened:
08/2006
Reported Since:
02/2011
Date of Status:
02/2011
Last Reported:
02/2012
Type:
Collection
Terms:
1 Months
Monthly Payment:
$0
Responsibility:
Individual

Credit Limit/Original Amount:
$734
High Balance:
NA
Recent Balance:
$1,596 as of 02/2012
Recent Payment:
$0

[RobertEG]

When the dentist billed you for the services, what was the due date for the first payment for which you became delinquent, and never thereafter brought the account back into good standing?  That is the definition of date of first delinquency. (you refer to both 2003 and 2006 as the date of debt......)

That is a date-certain that cannot be altered by any subsequent actions.  The collection must be excluded from your CR after 7 years plus 180 days from that DOFD.

Most commercial credit reports dont provide the reported DOFD (it should, in my opinion, be required under the FCRA, but is not).  If your own account records dont provide that date, you can request it from the CRA by filing a request under FCRA 609(a)(1), along with the required fee of $11.00.