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Old Medical Debt help

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Jumbobanana
Established Member

Old Medical Debt help

So I'm new to the whole credit world and have been working hard on getting my credit fixed in the last couple of years. I've been doing pretty well with getting a credit card and having it for a year (making on time payments, keeping utilization low, etc.) Unfortauntely, an old medical bill from a collection agency was just put on my report. A little background, in 2011, when I was about 18, I was working for an independent medical equipment contractor company. About one month into the job I got injured and was sent to the E.R., thus, as we all know, starts the money bleeding process.

 

When I got back from the hopsital my work had me sign some forms saying it was Workman's comp, and that they would take care of the bills. I didn't find out until maybe a year later that they didn't take care of some of it. I was in the process of getting a new car then, and it showed up on my report. I hastidly, paid off the one collection agency that was reporting because I figured that was my best option to clear my report, it wasn't until years later that I found out I had more options, especially with realizing that the company I worked for possibly didn't pay a dime of my medical bill. The company is  now defunct, with a non-working number, and no way to get a hold of anyone, but I digress. When I started paying attention to my credit report, there was that one closed account from the agency which I paid off, and another account that was open. It never gave me details, but I disputed it in one go with Credit Karma, saying I didn't have knowledge of it, and it was removed and came off within the week. It was from Phoenix Financial. Last year, shortly after I got my credit card and working on building my credit, it showed up again, and instead of disputing I decided to call them to get information. They couldn't really give me a lot of information, they said they usually receive them as "physician's bill", and that the year of original service was 2011. I tried to get more information like what the exact date was, what services did I receive, which hopsital did it come from, etc., but the lady I spoke with was crass, and eventually just hung up on me. Eventually, that too was dropped off my report, until last week, when I found a new report added, from a different company, for the same amount they claim I owe. It looks like Phoenix Financial finally just sold my supposed debt, and a new agency is trying to collect. As you can imagine, every time I deal with this, my credit score takes a hit, its been fluctuating so much in the last couple of years, It went down from about 670 to 630 last week alone. 

 

My question is should I try to dispute this new agency, by starting off with a Debt Validation? The thing is, I'm scared I'll put myself on their radar by initating contact with them, that might actually cause them to go through lengths and verify it. Also, the SOL in my state is 7 years, so it should come off my report sometime in 2018 right? Should I just wait it out? The thing is my credit score is in the pooper and I want it gone ASAP. And I also don't want to "Pay for Delete", as one, its over $500, two, my former company should have taken care of it, and three, I don't know how accurate it is, since it looks like it might have been shopped around by at least three different companies. I just feel like this random company doesn't have a right to collect. Thanks in advance for any help or advice!

Message 1 of 4
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Anonymous
Not applicable

Re: Old Medical Debt help

Debt Validation would be the first logical step, then possibly a Direct Dispute if they dig their heals in. Most of these bottom feeders that buy up this kind of debt are in it for the easy, low hanging fruit, and will just dump it back on the market if the debtor puts up a fight. If they do that, you may see it pop up again, and you'll play the wack a mole game with it, but once it reaches the 7 year mark, it becomes zombie debt and can't be placed on your reports any longer. 

Message 2 of 4
Jumbobanana
Established Member

Re: Old Medical Debt help

Thanks so much for the advice! I do want to do a debt validation letter, but like I said I’m nervous that it’ll cause them to harass me. Right now, I’m just dealing with it on my report, but I want it gone ASAP. Also, I called the “original creditor” and it took them forever to find it. They initially told me they don’t have any records of service with them, but then they dug some more and turns out it is from the ER visit in 2011, but they said they sent it to a collection agency called Polino Asset management, and say I should call them. I’ve never heard of them. So that means now that this is the 3rd collection agency that has this bill that I know of.

I’m thinking that I should first do a Debt Validation, and then do the HIPAA letter/whychat? Does that sound like a reasonable way to go about it?
Message 3 of 4
Anonymous
Not applicable

Re: Old Medical Debt help


@Jumbobanana wrote:
Thanks so much for the advice! I do want to do a debt validation letter, but like I said I’m nervous that it’ll cause them to harass me. Right now, I’m just dealing with it on my report, but I want it gone ASAP. Also, I called the “original creditor” and it took them forever to find it. They initially told me they don’t have any records of service with them, but then they dug some more and turns out it is from the ER visit in 2011, but they said they sent it to a collection agency called Polino Asset management, and say I should call them. I’ve never heard of them. So that means now that this is the 3rd collection agency that has this bill that I know of.

I’m thinking that I should first do a Debt Validation, and then do the HIPAA letter/whychat? Does that sound like a reasonable way to go about it?

DV first, yes. Can't advise on the HIPAA thing, thats not something we deal with here.

Message 4 of 4
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