As a general explanation, HIPAA applies to paid medical debts and collections and uses medical privacy as the basis for removal from credit.
Questions:
1. Is the debt medical? In your case, it appears the answer is yes.
2. Is the debt paid? If yes, then HIPAA can be used. If not, then HIPAA won't apply. In your case, it appears it is unpaid, so not applicable.
3. If unpaid, do you have the ability to PIF? If so, can you get the OC medical provider to accept payment?
4. If you can PIF, then it is possible to do HIPAA once paid, or possibly you might want to consider PFD which is better IMO on unpaid CA's.
5. When seeking PFD, it is important to do so carefully and it is important to have patience, because it most likely will not be accepted step 1. It is also possible to negotiate a PFD for a percentage of the debt amount.
NOTE: When attempting a PFD, it is best not to admit any liability nor to provide any new information to the CA, but to merely make a settlement to resolve the alleged debt in exchange for deletion from your CRA's. So read up carefully on PFD.
Message Edited by txjohn on 12-13-2009 07:29 AM
