Medical Collection

[KrissyDee]

I was notified that a medical collection was reported to the bureaus. The company received ownership of the account in May 2018 and reported it immediately. The bureaus did not wait the 180 days before placing it on my credit. Which cause my mortgage score to drop 65 points. I paid / settled the collections by August 2018. I am trying to file a dispute or complaint because the information was reported prior to the 180 grace period that bureaus are offering. Has anyone had any experience with this? I really am trying to get this off my credit because it was unfairly reported and I’m trying to obtain a mortgage.

[Anonymous]

I have not heard of any law or all-encompassing policy requiring any 180-day delay in reporting negative information. What are you referring to?

[stw715]

~It’s part of National Consumer Assistant Plan, derived from the CRA settlement back in March 2015.

In part...

“... Pursuant to the Attorney General’s agreement, the CRAs will institute a 180-day waiting period before medical debt will be reported on a consumer’s credit report. This waiting period will provide extra time to permit resolution of delinquencies that result from insurance delays or disputes. In addition, while delinquencies ordinarily remain on credit reports even after a debt has been paid, the CRAs will remove all medical debts from a consumer’s credit report after the debt is paid by insurance...”

However to OP, the “180 day waiting period” starts from when the medical bill was due originally and not from whenever a Collection Agency received the collection authority.

[KrissyDee]

I was reading that effective Sept 15, 2017 the credit bureaus agreed to offer a 180 day grace period before placing medical debt into credit reports. It was apart of the National Consumer Assistance Plan.

[KrissyDee]

I thought it was 180 days from the date it is reported to the credit bureaus. I was trying to read more on it but can not find it anywhere.

[Sloedough]

If there is any room for interpretation, collection agencies will interpet in any way to hurt you the most. I HATE collection companies. I get that they need to collect on a debt and that can be tough, but do they have to be so rude and sleezy.

I would dispute the account if it is paid. Collection companies tend not to reply to paid disputes. That is what happened to me. However this will take at least 30 days.

[RobertEG]

The CRAs agreed, as part of their settlement agreement with the offices of the AGs of 32 states, to delay inclusion of medical collections in credit reports they issue for at least 180 days from the date of first delinquency on the debt.

The delay in reporting applies to the CRA reporting the collection in credit reports they issue.

It does not apply to debt collectors reporting collections to CRAs.  The debt collector reports whenever they choose, but the CRA has agreed to delay the inclusion of that reporting in credit reports they issue until at least 180 days has passed since the DOFD.

Below is an exact copy of the provisions of the settlement agreement between the CRAs and the offices of the AG of the 32 states involved in the settlement:

"Medical Collections
To allow appropriate time for insurance remediation and clarity on what a

consumer's individual payment obligation is for a medical account, the CRAs

shall prevent the reporting and display of medical debt identified and furnished by Collection Furnishers when the date of the first delinquency is less than one hundred and eighty (180) days prior to the date that the account is reported to the CRAs.
1. The CRAs shall instruct Collection Furnishers on the use of the Metro 2
special comment codes of "BP" for debt identified as "paid by insurance" and

"AB" for debt identified as "being paid through insurance" and instruct

Collection Furnishers to remove or suppress medical accounts reported as

"paid by insurance" or "being paid through insurance" if such accounts were

in fact paid in full by the consumer's insurance carrier and were not the

obligation of the consumer.
2. The CRAs shall implement a process designed to effectively remove or

suppress known medical collections furnished by Collection Furnishers from

files within the CRAs' respective credit reporting databases when such debt is

reported either as having been paid in full by insurance or as being paid

through insurance."