Question about a PFD

[Viper786]

I am trying to clean up my credit report and the only negative I have on there (besides one late payment 4 years ago) is an item in collections for $122. 

Now this is a really low amount that I can easily pay. It was a medical bill that I had no idea went to collections because I thought my insurance covered the bill.

Anyway, do I send the PFD letter to the collection agency? or to the hospital?

Also, any tips on what to write in the letter?

Any help will be appreciated because my EQ score is 40 points lower than my TU score and i'm guessing because TU doesn't show the collection but EQ does?

[LIGHTNIN]

Hi and Welcome to the forums,

Contact the OC, to see if they still own the debt. If so, ask if they will accept payment and pull back the debt from the CA.

If the debt was sold to the CA, and this is the CA who is reporting on your CR, send a PFD letter to the CA.

Here is a example of the PFD letter...http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Example-Letter/m-p/4519/message-uid/4519#...

FICO scoring see a  Paid collection the same as an unpaid collection. It's the fact the collection is on your CR, is what dings your CS.

Good Luck to You! !

[Viper786]

Thanks a lot for the reply!

According to my credit report from equifax.com, this is the info on the CA:

Agency Address:	6324 Taylor Dr Flint, MI  48507-4680 (810) 239-3030
Date Reported:	10/2009
Date Assigned:	07/2009
Creditor Classification:	Medical/Health Care
Creditor Name:	ST JOSEPH MERCY ANN ARBOR OP
Account Number:	562XXXX
Account Owner:	Individual Account.
Original Amount Owned:	$122
Date of 1 st Delinquency:	01/2009
Balance Date:	10/2009
Balance Owned:	$122
Last Payment Date:
Status Date:	10/2009
Status:	D - Unpaid
Comments:	Medical

That address/phone number corresponds to this company: http://www.mermed.com/index.htm

As far as I can tell, it's not the OC but some CA. I will call the hospital tomorrow to see if they own the debt.

Thanks again for the reply!

[LIGHTNIN]

If the hospital still own the debt, try to get a letter in writing first before paying, saying that they will pull back the debt from the CA.

You may have to talk with a supervisor or a manager.Someone who has the authority to pull back the CA.

You can also check with your insurance company, to see if you can still file a claim. Most insurance companies have a time limit to file.

Hopefully you insurance will pay. Good Luck to you and let us know what happens.

[Viper786]

I called the hospital earlier today and they do not own the debt anymore, it's been sent to collections. 

Now the collection does not appear on my TU credit report but shows up on my Equifax. I did not purchase an Experian report. Do you guys think I should to see if it's on there as well? Or should I mention in the letter to remove the collection from all agencies?

Also, when I mail the PFD, should i sent it via certified mail? or does it not matter at this stage?

[guiness56]

Request they remove it from any CRA they report to.

I would send it CMRRR just to make sure they got it.

[Viper786]

Thanks for all the replies. I have written up the PFD and will send it out CMRRR first thing in the morning. Hopefully I can get this deleted. I will keep you guys updated.

[Viper786]

I just sent out the letter today.

Just out of curiousity: Lets say the CA agrees to the PFD. 

Is there a possibility that after I pay, they refuse to delete the collection from my credit report?

[guiness56]

You didn't send them money with the letter I hope.

If they agree, get it in writing, on their letterhead.

[Viper786]

No money, just the letter using the template from post 2. So if I have it in writing then I have nothing to worry about?