New to credit; need help with collection

mcsmith17 · ‎09-09-2007

Hello all, it looks as if this is a very helpful community and I'm hoping that you all might be able to pass on some knowledge to me. Without getting long winded, I'm 23, a recent college grad, and a recent new employee of a nicely compensated job. I'm also interested in beginning to build credit (other than the student loans that will begin repayment soon) as I know this is going to be very important in the future. Because of this, I pulled my myfico credit reports in order to get an idea of where I stand currently. Unfortunately, I came across some less than positive items on my report that I want to get an idea of how to handle. There seems to be a weatlh of knowledge here, and I figured this is as good a place as any to find out how I should handle this.

When I was 19 (just over 4 years ago) I had an emergency room visit stemming from a severe allergic reaction. I was under the assumption that this would be covered by my father's insurance, but unbeknownst to me I had been dropped from coverage due to lack of proof to the insurance company that I was in school. Unfortunately, this never was taken care of, and the bill was turned over to collection. Being hardheaded and not knowing the damage it could do at the time, I didn't pay the bill because I felt it wasn't my responsibility. So here I am, 4 years later, asking for your help.

From this one bill, I have 4 collections in total on each report. TU and EX have them listed as strictly collections. EQ has 2 listed as accounts (both with "company name unknown") and two listed as collections. The four collections are for $365, $75 (don't know what this is), $55 (don't know what this is), and $0 (really don't know what this is). The $365 and $0 are listed with NCO-Medclr on TU and EX. The $75 and $55 are listed with West Asset, and like I said, I don't know what they are for. EQ either lists them with numbers or "company unknown".

I hope you all are able to help. I definitely didn't think this was the way I would be starting off my credit life in trying to repair it, but I have to do what I have to do. In the very near future, I will be trying to finance a car and would like to be able to get the best rates I can.

It should be known, that the only other TLs on my reports are the 5 student loans I have in good standing. I will also be applying for CCs in the very near future. I would like to get these negative tradelines resolved as best I can before doing these two things.

Despite my young credit history, lack of any revolving accounts, not making a regularly scheduled payment on anything in my life (I held off until I knew I could afford it), and 4 collections on my reports, I'm still have scores of TU 639, EX and EQ 612.

I apologize for the long post and appreciate anyone who read through it. My initial thought is to dispute all collections as to my understanding it can't hurt anything if the CRAs can't verify. I don't want to act like I don't want to take responsibility for what I might owe (although unfortunately because of being dropped from coverage), but I really just want to get these items off my reports. Anyways, any help you can provide will be very valuable as I try to resolve this situation.

Anonymous · ‎09-10-2007

Hi mcsmith17,

GRRRRRRR to the insurance company!!! I'm going to refrain from going on my soapbox about health insurance companies because I don't want to bore you with that.

Your situation is a little complicated.

Have you and your father tried to work with the insurance company when you were initially rejected because of the lack of proof that you were in school? That should have been done ASAP. If you have all your original bills, you and your father may need to work with the insurance company to get this resolved.

While you're dealing with the insurance company, send a debt validation letter to the agency on your report. You want to make sure that they are authorized to collect the debt. I'll let the debt validation experts talk more on that.

In the meantime, you want to check the date of last ~~activity~~ delinquency on those records. NCO-Medclr are NOTORIOUS for reporting wrong information, like wrong dates. For example, the date of last ~~activity~~ delinquency should be around the time that you went to the hospital, NOT when they received the account.

Keep us posted.

Message Edited by JennLewis on 09-10-2007 11:00 AM

Anonymous · ‎09-10-2007

I had a similar situation a few years ago. I don't know if this will help, but this is what I did. At the time I didn't have insurance, so no options there. (But I do agree with what someone else said try getting the insurance to pick it up if they won't you can try what I did) I never dealt with the collection agency, I contacted the medical office the bill originated from and told them my situation. I was in school at the time, I had no assets and still didn't. They agreed to lowering my bill based on a sliding scale and my current income. I set up a payment arrangement with them directly, and disputed all information on my CR as being paid to OC. All the collections got removed from my reports. This was about 8 years ago, and it was with a doctor that I've been going to since I was a kid, so they were a little more understanding with me. Usually hospitals are willing to lower there rates for someone who doesn't work, so you may be able to work it out that way.

mcsmith17 · ‎09-10-2007

Thank you for the reponses. I don't think getting the insurance company to pay is an option, as my dad's company no longer uses them as of 3 years ago. I imagine those accounts are closed and dealing with them would be next to impossible. Also, I would pay through the hospital, but they aren't reporting this to the CBs.

After digging futher, and quite frankly noticing some things that I hadn't noticed yet, I came across some glaring inaccuracies in what the CRAs are reporting. Keep in mind that the only collection notice I ever received was for $365 concerning the emergency room visit in late July/early August 2003 (bolded for effect, you'll understand shortly

).

Here are the four negative TLs on my report (EQ provides the most info, but also lists two as an open account). I'll list what CB reports what though.

1. CA: NCO-medclr (TU & EX, EQ lists as "company name unknown" as an open account)

OB&CB: $365 (TU, EQ, EX)

DOLA: Jul 2002 (EQ)

Last Reported in Aug 08 by TU and EX

2. CA: West Asset (EQ doesn't know the CA name or OC)

OB&CB: $75 (TU, EQ, EX)

DOLA: Jul 2002 (EQ)

Last Reported in June 07 by TU

3. CA: West Asset (EQ doesn't know the CA or OC)

OB&CB: $55 (all 3)

DOLA: Jul 2003 (EQ)

Last Reported in May 06 by EX

4. CA: NCO-medclr (EQ lists as open account with "company unknown")

OB: $74 (all 3)

CB: $0 (all 3)

Date Paid/Closed: Sept 05 (I never made any payment)

DOLA: Jul 2003 (EQ) (How can I pay something off in 05 with a DOLA in 03?)

Last Reported in Oct 05 by EQ

These all originate from the same hospital per TU and EX; however, all DOLA's occur before this ER visit occured. Like I said before, the ER visit in early Aug 03 is the only thing I've received a collection notice for; obviously, this makes no sense to me as I can't think of anything else it could be. Anything else, and it is highly likely it occured when I was a minor when I would have had full insurance coverage regardless and I'm not sure I would be financially responsible for anyway.

Anyways, I wanted to give an update on the info I've found. I appreciate any direction anyone can give me as I'm obviously confused about this.

Anonymous · ‎09-11-2007

I would contact all three (tu, ex, eq) and dispute all of those collections as "not mine" since they have the oc as "unknown".

Anonymous · ‎09-11-2007

On an emergency room visit, you may have multiple bills. One from the hospital one from a radiologist, and a separate one from the physician's group. I just went through something similar myself. Had something fall through the cracks as insurance was not reported correctly and got a notice from a CA. Luckily I was able to get it straightened out in time.

Now you can pay them but a paid collection does not improve your score at all. You can ofer your payment for deletion of the collection record (and by this time since the SOL is probably expired) most will be happy to work with you. Just be sure not to offer what you cannot pay immediately.

Message Edited by Brammy on 09-11-2007 10:52 AM

Anonymous · ‎09-11-2007

first...start by locating your state ins. commissioner's office...you need to speak with someone that deals with medical ins issues. If you can't find anyone call consumer protection or affairs nothing...call AG office & get info. about who you contact.

Tell them that you sent a letter from school stating that you were a student at the time of ER visit.....you did not know that they didn't pay until NOW.....you thought it was taken care of by ins.

I had a friend go through this & the state made the ins. pay.

If it doesn't work....you will need to pay, as hosp.bills usually have no SOL.

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