Moderator Emerita
Posts: 28,098
Registered: ‎04-01-2007
Re: Collection Agency says it CANNOT delete?
[ Edited ]

Hi, welcome to the forums!


No, they're lying like a rug. And they are risking a HIPAA violation by continuing to report when the OC pulled the collection back.



edit in an attempt to clarify: creditors and collection agencies can always delete negative info. They're just not supposed to, per their agreements with the CRA's. It's a decision that they are allowed to make. Front-line phone answerers might not be aware of this.


With medical collections, one interpretation of HIPAA says that medical collections can no longer be reported once the debt is paid, because there is no longer a business relationship (probably have the terminology wrong, but that's the underlying idea) between the healthcare provider and the CA, and so there is no allowable purpose in continuing to report the collection.


DXH once had a medical collection on two of his reports. We knew nothing about it. It resulted from the insurance company denying the original bill by an ER physician. Instead of fixing the bill and resubmitting it, the ER billers just turned it over to collections. All we knew was that we got several EOB's stating that the bill had been sent to insurance, and then nothing. I defy anyone to tell me with a straight face that a consumer/ patient can easily track the progress of medical insurance payments via mailed-out EOB's. I work in patient health information/ records, and I'm as baffled as anyone.


At any rate, we contacted the insurance company, who we no longer used, and they graciously agreed to pay the claim. Once it was paid, I contacted the CA. The collection was gone the next month.


It's certainly not always that smooth or easy, but it's certainly better than regular (non-medical) collections.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007