topic Re: New Collections account!!! in Rebuilding Your Credit

New Collections account!!!

SCYD — Fri, 13 Jun 2014 13:56:32 GMT

I woke up this morning to a new notification that I have a new Collections account on my report.

It's a collection account from Focus Financial. I don't owe any past medical bills or credit cards so I had to do some research.

Turns out it's a collection from 2011 for a visit my minor daughter had to a medical provider at a hospital. I had insurance at the time and I never recived a bill from the hospital or this collection agency. Now after 3 years they have decided to place it on my credit report.

I'm waiting for a call back from the actual provider (hospital) to fax me some verification. Once I receive the verification, if it is correct what should I do? I have no problem paying it if it is correct, but I do not want it on my credit report as a paid collection.

Re: New Collections account!!!

mongstradamus — Fri, 13 Jun 2014 14:00:51 GMT

@SCYD wrote:
I woke up this morning to a new notification that I have a new Collections account on my report.

It's a collection account from Focus Financial. I don't owe any past medical bills or credit cards so I had to do some research.

Turns out it's a collection from 2011 for a visit my minor daughter had to a medical provider at a hospital. I had insurance at the time and I never recived a bill from the hospital or this collection agency. Now after 3 years they have decided to place it on my credit report.

I'm waiting for a call back from the actual provider (hospital) to fax me some verification. Once I receive the verification, if it is correct what should I do? I have no problem paying it if it is correct, but I do not want it on my credit report as a paid collection.

I am not sure if you can try and do pfd.that may be your best plan of action.

Re: New Collections account!!!

Fico2Go — Fri, 13 Jun 2014 14:02:25 GMT

@SCYD wrote:
I woke up this morning to a new notification that I have a new Collections account on my report.

It's a collection account from Focus Financial. I don't owe any past medical bills or credit cards so I had to do some research.

Turns out it's a collection from 2011 for a visit my minor daughter had to a medical provider at a hospital. I had insurance at the time and I never recived a bill from the hospital or this collection agency. Now after 3 years they have decided to place it on my credit report.

I'm waiting for a call back from the actual provider (hospital) to fax me some verification. Once I receive the verification, if it is correct what should I do? I have no problem paying it if it is correct, but I do not want it on my credit report as a paid collection.

This is what I would do if it were mine:

I would call and advise them that they have made a mistake and that it be removed from all three credit bureaus.

Be very careful about saying too much when dealing with collection companies as they may try to re-age your account. The last thing you want is for them to update the collection data to TODAY's date and restart the 7 year cycle. I've seen collection agencies do a HP on people without permission too. So be very careful and if possible lock your CRs right away.

Re: New Collections account!!!

navajomyst2003 — Fri, 13 Jun 2014 14:05:41 GMT

You might want to consider sending them a FDCPA/FCRA debt validation letter first to trigger their obligation to show the debt is legit, espeically if you never got a bill for it..

Re: New Collections account!!!

SCYD — Fri, 13 Jun 2014 14:08:26 GMT

@Fico2Go wrote:
@SCYD wrote:
I woke up this morning to a new notification that I have a new Collections account on my report.

It's a collection account from Focus Financial. I don't owe any past medical bills or credit cards so I had to do some research.

Turns out it's a collection from 2011 for a visit my minor daughter had to a medical provider at a hospital. I had insurance at the time and I never recived a bill from the hospital or this collection agency. Now after 3 years they have decided to place it on my credit report.

I'm waiting for a call back from the actual provider (hospital) to fax me some verification. Once I receive the verification, if it is correct what should I do? I have no problem paying it if it is correct, but I do not want it on my credit report as a paid collection.

This is what I would do if it were mine:

I would call and advise them that they have made a mistake and that it be removed from all three credit bureaus.

Be very careful about saying too much when dealing with collection companies as they may try to re-age your account. The last thing you want is for them to update the collection data to TODAY's date and restart the 7 year cycle. I've seen collection agencies do a HP on people without permission too. So be very careful and if possible lock your CRs right away.

From my conversation this morning with the provider, not the collection agency, I'm pretty sure it belongs to me as I recall the visit. However, I had health insurance at the time and they are researching to see if there should have been an adjustment or is this a balance I owe.

Will it be better if I pay the provider directly or should I pay the collection agency?

Re: New Collections account!!!

Fico2Go — Fri, 13 Jun 2014 14:16:24 GMT

@navajomyst2003 wrote:
You might want to consider sending them a FDCPA/FCRA debt validation letter first to trigger their obligation to show the debt is legit, espeically if you never got a bill for it..

A lot of these outfits will validate debt simply by sending a letter that shows you OWE THEM money. I once had to deal with a lawfirm and that's what they did to validate debt. I told them that my teenage son can draft a letter showing they OWE ME money too.

In the debt validation letter I would request specificially any contract or agreement that you signed as proof of debt validation.

Re: New Collections account!!!

Fico2Go — Fri, 13 Jun 2014 14:18:08 GMT

@SCYD wrote:
@Fico2Go wrote:
@SCYD wrote:
I woke up this morning to a new notification that I have a new Collections account on my report.

It's a collection account from Focus Financial. I don't owe any past medical bills or credit cards so I had to do some research.

Turns out it's a collection from 2011 for a visit my minor daughter had to a medical provider at a hospital. I had insurance at the time and I never recived a bill from the hospital or this collection agency. Now after 3 years they have decided to place it on my credit report.

I'm waiting for a call back from the actual provider (hospital) to fax me some verification. Once I receive the verification, if it is correct what should I do? I have no problem paying it if it is correct, but I do not want it on my credit report as a paid collection.

This is what I would do if it were mine:

I would call and advise them that they have made a mistake and that it be removed from all three credit bureaus.

Be very careful about saying too much when dealing with collection companies as they may try to re-age your account. The last thing you want is for them to update the collection data to TODAY's date and restart the 7 year cycle. I've seen collection agencies do a HP on people without permission too. So be very careful and if possible lock your CRs right away.

From my conversation this morning with the provider, not the collection agency, I'm pretty sure it belongs to me as I recall the visit. However, I had health insurance at the time and they are researching to see if there should have been an adjustment or is this a balance I owe.

Will it be better if I pay the provider directly or should I pay the collection agency?

Before you pay anything to anyone, you need to get a letter saying that they will remove the TL. Get this right away. Otherwise a paid collection is as bad as an unpaid collection. In some cases worse than unpaid collection.

Re: New Collections account!!!

navajomyst2003 — Fri, 13 Jun 2014 14:56:43 GMT

@Fico2Go wrote:
@navajomyst2003 wrote:
You might want to consider sending them a FDCPA/FCRA debt validation letter first to trigger their obligation to show the debt is legit, espeically if you never got a bill for it..
A lot of these outfits will validate debt simply by sending a letter that shows you OWE THEM money. I once had to deal with a lawfirm and that's what they did to validate debt. I told them that my teenage son can draft a letter showing they OWE ME money too.

In the debt validation letter I would request specificially any contract or agreement that you signed as proof of debt validation.

Agreed. In the past I have received such responses to debt validation requests and it is always good to request their documentation.

Re: New Collections account!!!

Anonymous — Fri, 13 Jun 2014 17:03:44 GMT

@Fico2Go wrote:
@SCYD wrote:
I woke up this morning to a new notification that I have a new Collections account on my report.

It's a collection account from Focus Financial. I don't owe any past medical bills or credit cards so I had to do some research.

Turns out it's a collection from 2011 for a visit my minor daughter had to a medical provider at a hospital. I had insurance at the time and I never recived a bill from the hospital or this collection agency. Now after 3 years they have decided to place it on my credit report.

I'm waiting for a call back from the actual provider (hospital) to fax me some verification. Once I receive the verification, if it is correct what should I do? I have no problem paying it if it is correct, but I do not want it on my credit report as a paid collection.

This is what I would do if it were mine:

I would call and advise them that they have made a mistake and that it be removed from all three credit bureaus.

Be very careful about saying too much when dealing with collection companies as they may try to re-age your account. The last thing you want is for them to update the collection data to TODAY's date and restart the 7 year cycle. I've seen collection agencies do a HP on people without permission too. So be very careful and if possible lock your CRs right away.

THIS IS ILLEGAL. They are not allowed to re-age accounts. The 7 year CRTP can NEVER be changed for any reason, it always starts from the day the account went into arrears and was not brought current, the DOFD (Date of First Default). In medical collections, this tends to be the date of service, or within 30 days after. If the CA/OC is reporting an incorrect DOFD and "re-aging" the account, they are illegally reporting the account to your reports. I think you can report them, but I would ask around the forum because I'm not sure exactly who to contact for what. (I'm not a legal information bank lol)

Regardless, you should only allow CAs to have your name and the account number shown on your report for the collection. Do not give them any other info even if they ask for it, because they have all they need and are just trying to phish for more information on you. They do not need any more than that.

Re: New Collections account!!!

stepstep — Fri, 13 Jun 2014 17:34:43 GMT

How can a paid collection be worse than an unpaid collection?

@Fico2Go wrote:

Before you pay anything to anyone, you need to get a letter saying that they will remove the TL. Get this right away. Otherwise a paid collection is as bad as an unpaid collection. In some cases worse than unpaid collection.

Re: New Collections account!!!

Anonymous — Fri, 13 Jun 2014 17:48:42 GMT

A paid collection can sometimes hurt your scores more than unpaid by having a recent "update" date.

Say you have an unpaid collection from 2010. Last it was updated on your reports was in 2012. Then in 2014, you pay it, and it dings your scores a bit because it looks recent to FICO, having updated from unpaid in 2012 to paid in 2014.

Re: New Collections account!!!

stepstep — Fri, 13 Jun 2014 18:05:08 GMT

@Anonymous wrote:
A paid collection can sometimes hurt your scores more than unpaid by having a recent "update" date.

Say you have an unpaid collection from 2010. Last it was updated on your reports was in 2012. Then in 2014, you pay it, and it dings your scores a bit because it looks recent to FICO, having updated from unpaid in 2012 to paid in 2014.

Well, crap. In the last 30 days I have paid almost $2,200 for $4,250 in charge-offs and collections. These were agreed to me noted as paid in full, no one would respond to my PFD letters. I will try GW letters soon towards these. I was really hoping getting the 4 grand of money due off my report would help a lot.

Re: New Collections account!!!

Anonymous — Fri, 13 Jun 2014 18:09:22 GMT

It's still a good thing to pay your debts, especially knowing you owe them. It may harm your score temporarily, but when it comes to underwriting and being analyzed, a paid collection/co looks better than unpaid. Plus it's still a debt you owe, whether it's on your reports or not.

Example: I had a CO with my old CU. Got reported to chexsystems. I could not open an account with a bank or credit union with it being unpaid. But I have since paid it, and now I am going to apply at a new credit union that said I should be eligible once it shows as paid.

Re: New Collections account!!!

stepstep — Fri, 13 Jun 2014 18:22:02 GMT

Yup, that is my feelings about the debt. I inncured it, I need to pay it. I just had visions of my score being raised enough to make me feel ok about my savings and tax return being wiped out so low. Reap what I sow though.

Re: New Collections account!!!

Anonymous — Fri, 13 Jun 2014 18:26:35 GMT

Unfortunate things happen. I'm sorry that happened to you, but it is what it is. Make the best of the current situation, and strive to make the future better.

I hope things get better and you can get these taken care of!

Also, once you get those paid off, if they are still on your reports, you can try to GW the creditor to remove the negative entry. Might not work, but definitely worth a shot!