topic Re: Questions About the New Rules for Medical Debt in Collections… in General Credit Topics

Questions About the New Rules for Medical Debt in Collections…

ThomasJNewton — Sat, 14 Jan 2023 17:36:25 GMT

Having read the press releases several times, I am still not clear about the new rules. I understand that paid amounts will get removed, but my questions are about unpaid amounts under $500. I have seen several different explanations as to whether the new rules for amounts under $500 apply only to new collections going forward, or if they apply to accounts already reported. I am also unclear as to when the new rules take effect. Anyone understand this well enough to clarify?

Basically, will existing medical collections under $500 still appear credit reports or not, and if it will be removed, when will that happen?

Re: Questions About the New Rules for Medical Debt in Collections…

Remedios — Sat, 14 Jan 2023 19:21:32 GMT

Medical collections under $500 will not report at all, and existing medical collections under $500 are supposed to be removed.

Over $500 will report but not before one year passes from when account became delinquent. Medical bill is typically past due after around 3 weeks from when statement generated.

Re: Questions About the New Rules for Medical Debt in Collections…

gdale6 — Tue, 17 Jan 2023 01:18:40 GMT

These new rules have already taken effect. All paid medical collections no matter who pays get deleted. As already stated under 500 are not to be reported at all.

Re: Questions About the New Rules for Medical Debt in Collections…

ThomasJNewton — Tue, 17 Jan 2023 04:30:32 GMT

@Remedios wrote:
Medical collections under $500 will not report at all, and existing medical collections under $500 are supposed to be removed.

I have several friends with Medical debt that is under $400, and yet still shows up on their credit reports. That was why I asked in the first place. Is there some process to follow to have it removed?

Over $500 will report but not before one year passes from when account became delinquent. Medical bill is typically past due after around 3 weeks from when statement generated.

That is good. I wonder if these new rules will make it easier to get medical debt collection agencies with debt under $500, to settle for less. Essentially, if they can never report, and are not likely to sue, would the be happier with $100 now, rather than hoping that someone will choose to pay basically uncollectable debt in full later?

Re: Questions About the New Rules for Medical Debt in Collections…

MT64 — Tue, 17 Jan 2023 18:11:08 GMT

First half of the year is what I read (as 2 of mine are still showing up on my reports) but that could mean anything. First half could be 6 months in, 2nd half the other 6 months. Seems very loosely in the air with no concrete clarification as to when. The thing I'm noticing on mine are that under account type they are listed as OTHER, despite being medical. I'm not sure if that's going to create an issue for a lot of people assuming these will just magically fall off.

Can anyone here confirm if your unpaid medical debt under $500 has been removed and if so, when and if the account was listed as OTHER? Thanks!

Re: Questions About the New Rules for Medical Debt in Collections…

ThomasJNewton — Wed, 18 Jan 2023 19:08:12 GMT

@MT64 wrote:
First half of the year is what I read (as 2 of mine are still showing up on my reports) but that could mean anything. First half could be 6 months in, 2nd half the other 6 months. Seems very loosely in the air with no concrete clarification as to when. The thing I'm noticing on mine are that under account type they are listed as OTHER, despite being medical. I'm not sure if that's going to create an issue for a lot of people assuming these will just magically fall off.

That was my problem as well, and why I asked. The friends that still have debt showing up, want to make settlement offers, but I told them not to do anything until it has been removed from their reports.

Can anyone here confirm if your unpaid medical debt under $500 has been removed and if so, when and if the account was listed as OTHER? Thanks!

As I said, I know of at least two or three friends who have some medical debt under $500 on their reports. I would also like to know if anyone has had some removed and if so, did it just happen automatically, or was there a process to have it done. Thanks in advance.

Re: Questions About the New Rules for Medical Debt in Collections…

MT64 — Wed, 18 Jan 2023 19:52:38 GMT

@ThomasJNewton

Well, a huge thanks to this thread for pushing me into a shove!

Instead of just assuming it would fall off and due to the lack of actual concrete answers, I decided to first pull my credit reports yesterday and then seek some answers from the horses themselves, the horses being the Big 3. The medical collections were being reported on both Experian and Transunion but not Equifax. I proceeded to call both Experian and Transunion to get an answer.

While it was impossible to speak to a live customer rep on the phone with Experian (simply was not an option), I did get a live agent with Transunion thankfully. I explained that I wanted to not only confirm when the medical collections under $500 were falling off this year due to the new rules but also wanted to make sure they were being reported correctly since the accounts were listed as OTHER and not medical, despite clearly being from medical outlets in the description.

Fantastic news! She told me that they would fall off at the end of June but I could dispute it now and they would remove it immediately since they did indeed fall under the $500 ruling and that it would be off my report within 7-days! This prompted me to continue to create a free account with Experian and dispute both the medical collections listed for the same reasons under OTHER. Amazingly, the very same day, they were not only removed but as a result, it increased my Experian score by 31 points!

Had no idea that 2 very minor medical collections would make such a drastic difference but 31 points is nothing to shrug shoulders over. Very happy with the outcome and surprised at the turnaround speed in which it was removed!

Cheers!

Re: Questions About the New Rules for Medical Debt in Collections…

ThomasJNewton — Wed, 18 Jan 2023 20:03:04 GMT

@MT64 wrote:
@ThomasJNewton

Well, a huge thanks to this thread for pushing me into a shove!

Glad to help!

Fantastic news! She told me that they would fall off at the end of June but I could dispute it now and they would remove it immediately since they did indeed fall under the $500 ruling and that it would be off my report within 7-days! This prompted me to continue to create a free account with Experian and dispute both the medical collections listed for the same reasons under OTHER. Amazingly, the very same day, they were not only removed but as a result, it increased my Experian score by 31 points!

What did you list as the reason for the dispute?

Had no idea that 2 very minor medical collections would make such a drastic difference but 31 points is nothing to shrug shoulders over. Very happy with the outcome and surprised at the turnaround speed in which it was removed!
Cheers!

Glad you got such a great result. Now I will have to tell my friends what to do to accelerate the process. :-)

Re: Questions About the New Rules for Medical Debt in Collections…

MT64 — Wed, 18 Jan 2023 20:09:11 GMT

@ThomasJNewton What did you list as the reason for the dispute?

I just listed that they were medical accounts under $500 listed as 'other' that should be removed.

Thanks!

Re: Questions About the New Rules for Medical Debt in Collections…

ThomasJNewton — Sat, 28 Jan 2023 15:17:37 GMT

@MT64 wrote:

I just listed that they were medical accounts under $500 listed as 'other' that should be removed.

Told my friends what you said and they did the same thing. Transunion collections came off immediately, Experian is still "under review". Thanks for the information.

Re: Questions About the New Rules for Medical Debt in Collections…

JeffMO — Sun, 29 Jan 2023 01:15:14 GMT

Just tried this myself, will report back as soon as I know something. Had 2 both under 500 on transunion and equifax

@MT64 wrote:
@ThomasJNewton

Well, a huge thanks to this thread for pushing me into a shove!

Instead of just assuming it would fall off and due to the lack of actual concrete answers, I decided to first pull my credit reports yesterday and then seek some answers from the horses themselves, the horses being the Big 3. The medical collections were being reported on both Experian and Transunion but not Equifax. I proceeded to call both Experian and Transunion to get an answer.

While it was impossible to speak to a live customer rep on the phone with Experian (simply was not an option), I did get a live agent with Transunion thankfully. I explained that I wanted to not only confirm when the medical collections under $500 were falling off this year due to the new rules but also wanted to make sure they were being reported correctly since the accounts were listed as OTHER and not medical, despite clearly being from medical outlets in the description.

Fantastic news! She told me that they would fall off at the end of June but I could dispute it now and they would remove it immediately since they did indeed fall under the $500 ruling and that it would be off my report within 7-days! This prompted me to continue to create a free account with Experian and dispute both the medical collections listed for the same reasons under OTHER. Amazingly, the very same day, they were not only removed but as a result, it increased my Experian score by 31 points!

Had no idea that 2 very minor medical collections would make such a drastic difference but 31 points is nothing to shrug shoulders over. Very happy with the outcome and surprised at the turnaround speed in which it was removed!

Cheers!

Jeff

Re: Questions About the New Rules for Medical Debt in Collections…

ThomasJNewton — Mon, 30 Jan 2023 17:51:35 GMT

One just got an e-mail from Experian, saying it was still under review. It has now been about 10 days. Transunion took a day or two. Guess we will see if they take the full 30 days or do it sooner.

Re: Questions About the New Rules for Medical Debt in Collections…

ThomasJNewton — Thu, 02 Feb 2023 17:12:02 GMT

Fourteen days and counting, still nothing from Experian. Now I am very curious what will happen at 30 days. Will he have to call them back or will they just remove it. Not sure what is happening. Are they waiting until the collection agency says that: "Yes, `Anestisia Services' is, in fact, medical debt, not a weird name for a clothing store."? :-)

Re: Questions About the New Rules for Medical Debt in Collections…

JeffMO — Thu, 09 Feb 2023 14:48:40 GMT

Transunion removed both within 3 days, equifax just denied me for the same exact accounts. Said they verified as accurate....well duh that's not the point. The new rules say they are suppose to come off... Not sure what they're thinking.

Re: Questions About the New Rules for Medical Debt in Collections…

Aspireto850 — Wed, 15 Feb 2023 07:27:15 GMT

Is the new ruling under the FCRA? Want to have the exact statute when I call the CBs since my paid collection is $900. Was just about it to ask for a deletion with the CA but won't have to do that now!!

thanks

Re: Questions About the New Rules for Medical Debt in Collections…

ThomasJNewton — Wed, 15 Feb 2023 09:20:43 GMT

I would try calling them again and explaining again what the issue is, but my guess is that they will not come off until July. Experian removed one of my friend's collections, but not the other. Their claim is that they will not be removed until July, unless the reporter agrees.

Re: Questions About the New Rules for Medical Debt in Collections…

ThomasJNewton — Wed, 15 Feb 2023 09:25:04 GMT

@Aspireto850 wrote:
Is the new ruling under the FCRA? Want to have the exact statute when I call the CBs since my paid collection is $900. Was just about it to ask for a deletion with the CA but won't have to do that now!!

thanks

It is not a statute, it is decision from the Credit Reporting Agencies. If you look at my other thread, @Remedios quoted the press release from the three of them, which might help you when you call.

Re: Questions About the New Rules for Medical Debt in Collections…

Anovice — Wed, 15 Feb 2023 21:49:13 GMT

Here is a piece from The Association of Credit and Collection Professionals (ACA International).

"Starting next year—on March 30, 2023—the CRAs will no longer include on consumer reports any medical debts with an original balance less than or equal to $500."

We will see.

First Wave of Medical Debt Credit Reporting Changes Starts July 1 - ACA International

Re: Questions About the New Rules for Medical Debt in Collections…

ThomasJNewton — Tue, 21 Feb 2023 15:46:40 GMT

@Anovice wrote:
"Starting next year—on March 30, 2023—the CRAs will no longer include on consumer reports any medical debts with an original balance less than or equal to $500."

First Wave of Medical Debt Credit Reporting Changes Starts July 1 - ACA International

Two most interesting things from that release are that it about debt that was originally under $500, so that collection agencies cannot get it reported by added fees or interest, and that it should all go away on 30 March. Guess we will see.

For my friend, one of his two on Experian went away and one was "confirmed as accurate", which as mentioned was not the issue. :-)

I guess he will have to check in 40 days or so.

Re: Questions About the New Rules for Medical Debt in Collections…

JeffMO — Wed, 08 Mar 2023 20:06:29 GMT

Update @ThomasJNewton

The previously discussed transunion deleted 2 off my report both under $500. Redisputed the same with Equifax and they were both removed today. It took the while 30 days but my fresh report shows their gone. Hopefully within helps someone else out.

Just be persistent that the collections are medical debt under $500 and you would like them removed per the new reporting rules. That's what I told them.

Cheers, Jeff