topic Re: Major CA concern! in Recovering from Medical Debt

Major CA concern!

EDub357 — Sun, 26 Apr 2009 03:03:40 GMT

There is an item from a CA showing on my CR. That item was paid directly to the OC several months ago. I have a letter from the OC that was sent to the CA stating that the account has been satisfied, but the CA still reports the item on my CR. What are my steps to resolving this in an expedient manner?

Re: Major CA concern!

fused — Sun, 26 Apr 2009 04:18:16 GMT

If the letter says satisfied and does not mention deleting the paid collection, the CA is not obligated to have it deleted. You can try a GW letter.

Re: Major CA concern!

RobertEG — Sun, 26 Apr 2009 04:56:36 GMT

This topic interests me. I think the CA has no option other than to delete their collection account with the CRA.

I think the scenario is this. The OC still owns the debt, but has assigned a CA to collect on their behalf. The CA then posts to your CR.

The consumer is then able to reach agreement with the OC. The consumer never pays anything to the CA, so the CA cannot report account status 62 (CA account paid in full) under their account reporting. It was not paid to them..

Would that not sever any further authority of the CA, and thus require the CA to delete their entire CA account with the CRA? That is how I read it under the CRA reporting guidelines.

I dont see how a CA can report on an account that they have no legal authority to continue collection activities.

CA reporting of current account status is limited to only four options:

(1) reporting the CA account as paid in full (CA account status updated to 62),
(2) reporting ongoing collection activity (status code 93),
(3) reporting the deletion of the CA account for reasons other than fraud (status DA), or
(4) reporting of deletion of the CA account for reasons of fraud (status DF).
No other reporting codes are provided or permitted.

In this scenario, the consumer did not pay the CA account, they paid the OC account. So the CA must delete their account with the CRA under status code DA.

I think the CA account has no option other than to report total deletion of the CA account in its entirety under account status DA (delete entire account, for reasons other than fraud) once the OC terminates

Message Edited by RobertEG on 04-25-2009 09:56 PM

Re: Major CA concern!

fused — Sun, 26 Apr 2009 05:11:54 GMT

If its a med collection, there are other remedies.

Re: Major CA concern!

Itsmeagain — Sun, 26 Apr 2009 12:27:52 GMT

What is the CA reporting on the "Status" line?

Re: Major CA concern!

EDub357 — Sun, 26 Apr 2009 14:16:02 GMT

The CA is reporting unpaid. But the account was paid to the OC several months ago. The OC was my former dentist. The CA says they never received notofication that the account was paid. Do they have a right to attempt to collect and isnt reporting on the CR an attemt to collect?

Re: Major CA concern!

Itsmeagain — Sun, 26 Apr 2009 15:52:58 GMT

Since this is a medical collection I will defer to the experts here.

Re: Major CA concern!

Anonymous — Sun, 26 Apr 2009 17:14:55 GMT

Because this is medical follow the HIPAA process from step #1. If it is deleted with the Pre-HIPAA dispute then you are done.