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Reinsertion of Medical Collection

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lessonslearned
New Contributor

Reinsertion of Medical Collection

I have a medical collection on my account that's been through three different collection agencies. No one can verify it! I even called the original creditor and they can't find an account with my name. Other then being an absolute nuisance, it's hurting my score a bit. They have seven days to respond to the latest debt validation letter which references the Texas Finance code. Is there anything else I can do to get this to go away for good? Can they be sued for continually passing around the debt?

Message 1 of 5
4 REPLIES 4
RobertEG
Legendary Contributor

Re: Reinsertion of Medical Collection

Passing of a debt under collection to a new debt collector, either by a new assignment if they still own it, or by sale of the debt to another, is their right.

The new debt collector is then able to report their collection, with only one exception.

 

The FCRA has a special reinsertion requirment for information that has been previously disputed under the FCRA, and the dispute resulted in deletion based on lack of verification of accuracy of the disputed information.   See FCRA 611(a)(5)(B).

Note that the provision relates to disputes over the accuracy of credit reporting under the FCRA, not to debt validation under the FDCPA or the TX Financial Code.

 

If you did not file an actual dispute under the FCRA, there are no restircions on reinsertion of previuosly deleted information.

For details on the limitations on reinsertion of information that was deleted based on an unverified prior dispute, see FCRA 611(a)(5)(B).

 

If the debt collector fails to provide validation within 30 days of your TX notice of inaccuracy, the debt collector is then required under the TX Financial Does to delete the reported collection, but may reinsert once they do provide validation.

Message 2 of 5
lessonslearned
New Contributor

Re: Reinsertion of Medical Collection

So, should the collection pop again, I should use the FCRA instead of Texas Finance? Doesn't the FCRA have an unlimited amount of time to reply though?

Message 3 of 5
lessonslearned
New Contributor

Re: Reinsertion of Medical Collection

Also, it's not my debt. I wasn't in the hospital on Thanksgiving, which is when they said the charge occured and will never be able to validate it.

Message 4 of 5
RobertEG
Legendary Contributor

Re: Reinsertion of Medical Collection

Wait for completion of the TX "DV" process.

They must respond within 30 days, but they are not required to provide validation at that time.  They are permitted to state that they are not yet providing validation.

However, the purpose of the 30-day response period is if they dont provide the requested validation, the TX Financial Code requires them to then delete theri reported colllection, but they may then reinsert once they do provide validation.  Deletion thus might be temporary........

 

They could simply delete and pass to another CRA, which can then report and start the cycle anew.

 

You could choose to file a dispute under the separate FCRA dispute process.  The FCRA dispute process is different in two ways.

First, it requires a response within 30ísh days, but second, unlike a DV request, the consumer must clearly identify an actual error in information they have reported to the CRA,and must provide some basis for support of the assertion that it is inaccurate.  One cannot simply state that they dispute based on an unsupported contention that the asserted debt is not valid.  If you have such evidence, then you can compel an investigation and completion of that investigation within 30 days, and response to you within 5 days thereafter.  

 

Since you have now stated that you assert the debt to clearly not have resulted from any transaction of yours, you could alternately pursue block of the information from your credit report by filng a police report and using the FCRA identity theft process.  See FCRA 605B

If willing to state in a police report that you never had any transaction related to the asserted debt, then blockage can be effected without any input or say from any debt collector.

 

You thus have options that include waiting for conclusion of the TX process, filing a dispute over accuracy of their credit reporting, or inititing an identity thefr process to have the information blocked from your credit report with no resolution of its factual accuracy.

Message 5 of 5
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