Collection reporting

[mich800]

The background.  Had some medical issues last year, all is well now but had some uncovered expenses the insurance did not pick up.  Entered into payment plan with hospital and pad it off in a few months.  Was contacted by a collection agency around July 2020 stating I owed $70.  Went in circles with them because I thougth it was included in what I paid to the hosipical.  Turns out it was some out of network Dr or some other fee.  In any case after we sorted it out, which took a couple months I paid it.  This was November/December 2020.  All would seem good.  Never hit my credit report and everything is current.  Today I get notice that the collection agency put on a paid collections on my Transunion report.  I will be calling them on Monday, but is this common?  Seems like a *%^&$^%$  policy to report to someone's credit a collection that was paid 2 months prior and was never on my credit until today.

[IntegerIntrovert]

Sorry to hear about that, I did a search for nusiance collections. This might fall into that, if it's under $100.

https://finance.yahoo.com/news/nuisance-debt-collections-under-100-060000708.html

Best of luck!

[mich800]

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@IntegerIntrovert wrote:

Sorry to hear about that, I did a search for nusiance collections. This might fall into that, if it's under $100.

https://finance.yahoo.com/news/nuisance-debt-collections-under-100-060000708.html

Best of luck!

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My next full credit score will be next week so I will know what the damage is.  In any case I will be contacting them.  I just cannot belive they pushed something to the credit reports months after it was resolved.

[RobertEG]

A debt collector has the right, any time after they have obtained collection authority, to report that fact to a CRA.

There is no limitation period after they obtain collection authority within which they must report their collection.

They can, although not common,even report after the debt is paid.

However, if the collection is on a medical debt, the CRAs have agreed in a legal settlement agreement dating from 2017 not to include any reported medical collection until the debt has reached at least 180 days from date of initial delinquency.

When did the debt first become delinquent, and when was it paid?  If paid within the 180 day grace period, it should not be included in your credit report.  If it was, the issue is with the CRA and their violation of their settlement agreement, and not with the debt collector for having reported it.

[mich800]

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@RobertEG wrote:

A debt collector has the right, any time after they have obtained collection authority, to report that fact to a CRA.

There is no limitation period after they obtain collection authority within which they must report their collection.

They can, although not common,even report after the debt is paid.

However, if the collection is on a medical debt, the CRAs have agreed in a legal settlement agreement dating from 2017 not to include any reported medical collection until the debt has reached at least 180 days from date of initial delinquency.

When did the debt first become delinquent, and when was it paid?  If paid within the 180 day grace period, it should not be included in your credit report.  If it was, the issue is with the CRA and their violation of their settlement agreement, and not with the debt collector for having reported it.

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The procedure was in March.  Got the notice in July and paid in December after confirming the legitimacy,  all 2020.  And this is what I hate about the medical industry.  They need to run it like the building/construction industry.  There needs to be a "general contractor" that bills and distributes payments to all involved.  Getting bills from 5 different people months after the fact just adds to the confusion.  I will also add, at least here in Michigan, the medical people have been super aggressive.  In this case it looks like it was sent to this agency within 60 days of service.  At no time was I unwilling to pay, but no one as able to provide me sufficient detail that the bill they were trying to collect was not already paid to the hospital.