Medical collections and new rules.

sprks7979 · ‎08-25-2022

Hello, everyone. I have a question about medical collections and the new rules as of 7/1/22 and I havent been able to find the info in the forums here. I have roughly 10k in medical debt looming. I see that the new rule will remove paid medical debt from credit reports. My question, does this need to be "paid in full" or would negotiating the debt, and paying the negotiated amount get it removed as well? Anyone have any experience getting negotiated payments removed of the new rule? Thanks in advance.

pizzadude · ‎08-25-2022

This thread has several links which should provide some clarifying details.

To answer in the context of your question, I believe "paid" refers to medical debt that is marked as paid on your reports. I assume this refers to collections, which are frequently settled for less than the original amount owed but I think if marked as paid they should be removed per the new rules.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX

SDMarik · ‎08-26-2022

I am not an expert here, but from my understanding it would mean that if you have a medical collections get paid, instead of marking it as a paid collection, it would be the equivalent of a PFD. However, there are already some situations (FHA loan for instance) where lenders can not take medical debt into consideration when making a financing decision, even if it is an open collection on your file.

"When prosperity comes, do not use all of it"

teekay629 · ‎08-29-2022

I have one that I settled a couple weeks ago and the lady said it would be removed. I did not ask and she volunteered that. So I am assuming it counts. I believe some on here have. I will report back once it hits my credit report!

teekay629 · ‎09-16-2022

@teekay629 wrote:
I have one that I settled a couple weeks ago and the lady said it would be removed. I did not ask and she volunteered that. So I am assuming it counts. I believe some on here have. I will report back once it hits my credit report!

I woke up this morning and the collections is totally removed from my Experian report!

OmarGB9 · ‎09-19-2022

@teekay629 wrote:
@teekay629 wrote:
I have one that I settled a couple weeks ago and the lady said it would be removed. I did not ask and she volunteered that. So I am assuming it counts. I believe some on here have. I will report back once it hits my credit report!
I woke up this morning and the collections is totally removed from my Experian report!

Thank you for coming back and updating us! Very valuable DP.

Last App: 1/10/2023
Penfed Gold Visa Card

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:

Current FICO 8 scores:

teekay629 · ‎09-21-2022

@OmarGB9 wrote:
@teekay629 wrote:
@teekay629 wrote:
I have one that I settled a couple weeks ago and the lady said it would be removed. I did not ask and she volunteered that. So I am assuming it counts. I believe some on here have. I will report back once it hits my credit report!
I woke up this morning and the collections is totally removed from my Experian report!
Thank you for coming back and updating us! Very valuable DP.

No problem!

Strangely, the drop in the collections also caused my score to drop 22 points! I was expecting nothing to happen since it is older than two years, but definitely not a drop! I even doubled checked and everything under that alert was positive. I really hate how scoring works.

OmarGB9 · ‎09-21-2022

@teekay629 wrote:
@OmarGB9 wrote:
@teekay629 wrote:
@teekay629 wrote:
I have one that I settled a couple weeks ago and the lady said it would be removed. I did not ask and she volunteered that. So I am assuming it counts. I believe some on here have. I will report back once it hits my credit report!
I woke up this morning and the collections is totally removed from my Experian report!
Thank you for coming back and updating us! Very valuable DP.
No problem!

Strangely, the drop in the collections also caused my score to drop 22 points! I was expecting nothing to happen since it is older than two years, but definitely not a drop! I even doubled checked and everything under that alert was positive. I really hate how scoring works.

Possible "rebucketing" led to the drop.

Last App: 1/10/2023
Penfed Gold Visa Card

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:

Current FICO 8 scores:

teekay629 · ‎09-22-2022

@OmarGB9 wrote:
@teekay629 wrote:
@OmarGB9 wrote:
@teekay629 wrote:
@teekay629 wrote:
I have one that I settled a couple weeks ago and the lady said it would be removed. I did not ask and she volunteered that. So I am assuming it counts. I believe some on here have. I will report back once it hits my credit report!
I woke up this morning and the collections is totally removed from my Experian report!
Thank you for coming back and updating us! Very valuable DP.
No problem!

Strangely, the drop in the collections also caused my score to drop 22 points! I was expecting nothing to happen since it is older than two years, but definitely not a drop! I even doubled checked and everything under that alert was positive. I really hate how scoring works.
Possible "rebucketing" led to the drop.

It really plays with morals on doing the right thing (paying the debt) in cases like this though!