topic Re: Medical Collections in Understanding FICO® Scoring

Medical Collections

Anonymous — Wed, 11 Mar 2015 15:31:48 GMT

I have been doing a lot of research on clearing up medical bill collections. Is it true that once you pay off a medical collection bill that it should drop off your credit report? I have a read a couple of articles that say that it should but I am not sure how reliable they are.

Re: Medical Collections

Anonymous — Wed, 11 Mar 2015 16:09:14 GMT

@Anonymous wrote:
I have been doing a lot of research on clearing up medical bill collections. Is it true that once you pay off a medical collection bill that it should drop off your credit report? I have a read a couple of articles that say that it should but I am not sure how reliable they are.

Nope, they don't drop off. They just report as paid and that does not to help raise your score. In the future models of FICO small paid medical collections won't hurt your score but for now they do

Re: Medical Collections

KellyP25721 — Wed, 11 Mar 2015 21:17:44 GMT

The definitely don't automatically drop off and they do negitively impact your score.

Re: Medical Collections

Anonymous — Thu, 12 Mar 2015 00:34:04 GMT

Have you seen the latest news about the NY Attorneys General getting the big 3 CRA to remove paid medical collections? If not just google it -- It just happened Monday. Not sure if this is just for medical debt that was later paid by insurance or all payments on medical debt.

Also, medical debt in the future will have a 180 day waiting period to allow for insurance to pay claims and consumers to pay the debt.

Re: Medical Collections

krielly — Thu, 12 Mar 2015 12:04:55 GMT

I have heard of many successful removals of PAID medical collections by way of disputes citing "HIPPA violations".

I don't know the details, but I suggest Googling the above for more info.

Re: Medical Collections

krielly — Thu, 12 Mar 2015 14:13:17 GMT

I found an old post from these forums with a lot of info:

http://ficoforums.myfico.com/t5/forums/forumtopicprintpage/board-id/rebuildingcredit/message-id/5336/print-single-message/true/page/1

Re: Medical Collections

Anonymous — Thu, 12 Mar 2015 14:23:10 GMT

@Anonymous wrote:
I have been doing a lot of research on clearing up medical bill collections. Is it true that once you pay off a medical collection bill that it should drop off your credit report? I have a read a couple of articles that say that it should but I am not sure how reliable they are.

No it is not true that the paid med collection will simply drop off. I used a strategy called PFD(Paid For Delete). This is where you negotiated the payment of the debt for removal from your credit report. Go to the Rebuilding Credit forum and search PFD. Also, as mentioned, in the Fico 9 model, paid collections will lose their negative effects on your credit.

As for the recent New York agreement with the 3 major credit bureaus, I read the article and took from it that this dealt with collections that were paid by the insurer? I could be wrong?