medical collection account of $70 reduced my score more than 100 points

[Anonymous]

I have historically had very strong credit (above 800).  One medical collection of $70 that went to collection has reduced my score more than 100 points.  I'm trying to obtain the best rate on a new mortgage and I am very frustrated.

I've tried the pay for delete and then the debt validation route.  No response on the pay for delete and they sent some information to me now evidencing the claim.  I feel like I am out of options. If I pay off the account on collection - my understanding is that the negative report stays on my credit score for some time.  How quickly will I receive an increase?  Is there another route to take care of this amount and raise my score? 

What can I do?  Thanks. 

[Anonymous]

Myfico.com no longer has boards about Medical Debt (it did at one time and was extremely helpful) but you can google "HIPAA process" to go about the best way to pay and get and debt removed from your CR.

[mauve]

Have you tried talking to the OC? 

Google "HIPAA Letter process" and follow those instructions.  In my experience, TU deleted with the first letter.  I'm about to send out the 2nd round of letters, the ones to the OC.  It has been said that sometimes it works even if you have talked to the CA. 

[MarineVietVet]

---

@Anonymous wrote:

I have historically had very strong credit (above 800).  One medical collection of $70 that went to collection has reduced my score more than 100 points.  I'm trying to obtain the best rate on a new mortgage and I am very frustrated.

I've tried the pay for delete and then the debt validation route.  No response on the pay for delete and they sent some information to me now evidencing the claim.  I feel like I am out of options. If I pay off the account on collection - my understanding is that the negative report stays on my credit score for some time.  How quickly will I receive an increase?  Is there another route to take care of this amount and raise my score? 

What can I do?  Thanks. 

---

Hello and welcome.

Does the OC (Original Creditor) still own the debt or was it sold to a CA? If the OC only assigned the account in some cases the OC will agree to take payment although you'd still need to ask for a written agreement for a PFD. If they've sold the account all you can do is work with the CA.

Simply paying the $70 will not help your score although a lender might look favorably that you paid a legitimate debt. A collection will remain on your reports for usually 7.5 years from the DOFD (Date of First Delinquency) and although it will begin to lose it's effect after several years it is still considered a major derogatory entry. Your score will suffer for a long time.

Some people have had success with removing medical collections through what is called a HIPAA process. I'm not all that familiar with it but I understand you can do a search on how to go about that process.

I'm sure others will be along soon with more advice. Good luck to you.

From a BK years ago to:

9/09 EX pulled by lender 802
3/10 EQ- 800
4/10 TU -772

You can do the same thing with hard work

Credit Scoring 101
Common Abbreviations
Frequently Requested Threads
Credit Problems Which Is Worse?
Whats In Your FICO Score

[Anonymous]

Thanks for your response. The OC has told me that they do NOT own the account. However, the OC said that if I pay them, they "work" with the CA and will get it marked as "paid"

Both the OC billing office and CA are located in the same small city which leads me to believe that they may have some sort of an affiliation.

I've called both the CA and OC and both have told me that they will NOT do a pay for delete. 

[mauve]

I'd do the HIPAA process then, no question.  You can pay the OC in the second step or you can do it now....but look at the specs she puts in the process before you do so. 

[MarineVietVet]

---

@Anonymous wrote:

Thanks for your response. The OC has told me that they do NOT own the account. However, the OC said that if I pay them, they "work" with the CA and will get it marked as "paid"

Both the OC billing office and CA are located in the same small city which leads me to believe that they may have some sort of an affiliation.

I've called both the CA and OC and both have told me that they will NOT do a pay for delete. 

---

Then all you can do at this point in my opinion is pay the $70 and then start with GW (Good Will) letters to get the entry removed early.

A collection is just as damaging score wise whether it is paid or unpaid.

I would also investigate the HIPAA process that has been mentioned several times.

From a BK years ago to:

9/09 EX pulled by lender 802
3/10 EQ- 800
4/10 TU -772

You can do the same thing with hard work

Credit Scoring 101
Common Abbreviations
Frequently Requested Threads
Credit Problems Which Is Worse?
Whats In Your FICO Score

[Anonymous]

Ok, so if I reading correctly, If you already paid the CA, you can still do the GW and HIPPA process to try and get it removed?

[mauve]

Yes.  Read up on whychat's page about it. 

[Anonymous]

YAY! Thanks