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What to do when...

Valued Member

What to do when...

I'm having an issue. I have medical insurance, and it's a PPO. I always go to the providers on the list. I get the letters from the insurance stating how much they paid, so I just waited for the bill from the provider that way I could pay them what I owe them. Instead, I recieved a letter from a collection agency. I never got a single bill! Is there anything you can do in these kinds of situations. The debt amount is valid, but I would have paid it before collections if I had recieved a bill. The collections agency is willing to not pursue further collections (reporting to the bureaus) if I stick with a payment plan.

In the garden since 7/27/12 after getting two credit rebuilding cards.

Starting Score: 527
Current Score: TU-617 Equifax-606 Experian Plus 569
Goal Score: 650 by 1/1/13
3 REPLIES
Super Contributor

Re: What to do when...


tooyoungforbadcredit wrote:

I'm having an issue. I have medical insurance, and it's a PPO. I always go to the providers on the list. I get the letters from the insurance stating how much they paid, so I just waited for the bill from the provider that way I could pay them what I owe them. Instead, I recieved a letter from a collection agency. I never got a single bill! Is there anything you can do in these kinds of situations. The debt amount is valid, but I would have paid it before collections if I had recieved a bill. The collections agency is willing to not pursue further collections (reporting to the bureaus) if I stick with a payment plan.


If they agree not to report it to the CRAs then I'd probably work out payments with them.   Having it go to collections isn't necessarily bad ~ it's when the CA puts it on your reports that you'll have problems....

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Senior Contributor

Re: What to do when...

+1.  I went through something similiar a few years ago.

 

Just because the provider sent it straight to collections does NOT mean that you now have a collection account showing on your CR.

 

Be sure to make a payment plan that you can afford.  I just spent nearly two years making teeny tiny payments to a collection agency, paid it off earlier than planned, and it NEVER showed up on ANY of my CR's...

Zero percent financing is where the devil lives...

10/01/17 Fico8 scores: EX 660, EQ 647, TU 663
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Valued Member

Re: What to do when...

Yeah I've been doing 40 a month directly out of the bank. Nothing has showed up on my reports, so I'm okay with that. However, sending it straight to collections takes my right to appeal the balance to the insurance company away. You know maybe some of it should have been paid by the insurance, but it's too late now.

In the garden since 7/27/12 after getting two credit rebuilding cards.

Starting Score: 527
Current Score: TU-617 Equifax-606 Experian Plus 569
Goal Score: 650 by 1/1/13