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Questions About the New Rules for Medical Debt in Collections…

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JeffMO
Regular Contributor

Re: Questions About the New Rules for Medical Debt in Collections…

Just tried this myself, will report back as soon as I know something. Had 2 both under 500 on transunion and equifax


@MT64 wrote:

@ThomasJNewton 

 

Well, a huge thanks to this thread for pushing me into a shove!

 

Instead of just assuming it would fall off and due to the lack of actual concrete answers, I decided to first pull my credit reports yesterday and then seek some answers from the horses themselves, the horses being the Big 3. The medical collections were being reported on both Experian and Transunion but not Equifax. I proceeded to call both Experian and Transunion to get an answer.

 

While it was impossible to speak to a live customer rep on the phone with Experian (simply was not an option), I did get a live agent with Transunion thankfully. I explained that I wanted to not only confirm when the medical collections under $500 were falling off this year due to the new rules but also wanted to make sure they were being reported correctly since the accounts were listed as OTHER and not medical, despite clearly being from medical outlets in the description.

 

Fantastic news! She told me that they would fall off at the end of June but I could dispute it now and they would remove it immediately since they did indeed fall under the $500 ruling and that it would be off my report within 7-days! This prompted me to continue to create a free account with Experian and dispute both the medical collections listed for the same reasons under OTHER. Amazingly, the very same day, they were not only removed but as a result, it increased my Experian score by 31 points!

 

Had no idea that 2 very minor medical collections would make such a drastic difference but 31 points is nothing to shrug shoulders over. Very happy with the outcome and surprised at the turnaround speed in which it was removed!

 

Cheers!

Smiley Very Happy


 

Jeff






Capital one 500, Discover 11.1k. UMB Signature visa 18.5k, DW UMB card Auth user 16K. Citi Costco anywhere 26.6k, Amazon Prime 22.3K
BH/Comenity Photo 10k Lowes advantage 35k
AAOA 2y4m, oldest 5 years. 0 collections. 125k income, Util 1% inq 1/12. 1/24. 30/60/90 = 0, No derog's, clean file. Rebuilding started 4 years ago.
Starting Score: 560
Current Score: 795
Goal Score: 850


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Message 11 of 26
ThomasJNewton
Frequent Contributor

Re: Questions About the New Rules for Medical Debt in Collections…

One just got an e-mail from Experian, saying it was still under review. It has now been about 10 days. Transunion took a day or two. Guess we will see if they take the full 30 days or do it sooner.

Message 12 of 26
ThomasJNewton
Frequent Contributor

Re: Questions About the New Rules for Medical Debt in Collections…

Fourteen days and counting, still nothing from Experian. Now I am very curious what will happen at 30 days. Will he have to call them back or will they just remove it. Not sure what is happening. Are they waiting until the collection agency says that: "Yes, `Anestisia Services' is, in fact, medical debt, not a weird name for a clothing store."? :-)

Message 13 of 26
JeffMO
Regular Contributor

Re: Questions About the New Rules for Medical Debt in Collections…

Transunion removed both within 3 days, equifax just denied me for the same exact accounts. Said they verified as accurate....well duh that's not the point. The new rules say they are suppose to come off... Not sure what they're thinking.






Capital one 500, Discover 11.1k. UMB Signature visa 18.5k, DW UMB card Auth user 16K. Citi Costco anywhere 26.6k, Amazon Prime 22.3K
BH/Comenity Photo 10k Lowes advantage 35k
AAOA 2y4m, oldest 5 years. 0 collections. 125k income, Util 1% inq 1/12. 1/24. 30/60/90 = 0, No derog's, clean file. Rebuilding started 4 years ago.
Starting Score: 560
Current Score: 795
Goal Score: 850


Take the myFICO Fitness Challenge
Message 14 of 26
Aspireto850
Established Contributor

Re: Questions About the New Rules for Medical Debt in Collections…

Is the new ruling under the FCRA? Want to have the exact statute when I call the CBs since my paid collection is $900. Was just about it to ask for a deletion with the CA but won't have to do that now!!

 

thanks









Message 15 of 26
ThomasJNewton
Frequent Contributor

Re: Questions About the New Rules for Medical Debt in Collections…

I would try calling them again and explaining again what the issue is, but my guess is that they will not come off until July. Experian removed one of my friend's collections, but not the other. Their claim is that they will not be removed until July, unless the reporter agrees.

Message 16 of 26
ThomasJNewton
Frequent Contributor

Re: Questions About the New Rules for Medical Debt in Collections…


@Aspireto850 wrote:

Is the new ruling under the FCRA? Want to have the exact statute when I call the CBs since my paid collection is $900. Was just about it to ask for a deletion with the CA but won't have to do that now!!

 

thanks


It is not a statute, it is decision from the Credit Reporting Agencies. If you look at my other thread, @Remedios quoted the press release from the three of them, which might help you when you call.

Message 17 of 26
Anovice
Established Member

Re: Questions About the New Rules for Medical Debt in Collections…

Here is a piece from The Association of Credit and Collection Professionals (ACA International).

 

"Starting next year—on March 30, 2023—the CRAs will no longer include on consumer reports any medical debts with an original balance less than or equal to $500."

 

We will see.

 

First Wave of Medical Debt Credit Reporting Changes Starts July 1 - ACA International

 

Message 18 of 26
ThomasJNewton
Frequent Contributor

Re: Questions About the New Rules for Medical Debt in Collections…


@Anovice wrote:

"Starting next year—on March 30, 2023—the CRAs will no longer include on consumer reports any medical debts with an original balance less than or equal to $500."

 

First Wave of Medical Debt Credit Reporting Changes Starts July 1 - ACA International

 


Two most interesting things from that release are that it about debt that was originally under $500, so that collection agencies cannot get it reported by added fees or interest, and that it should all go away on 30 March. Guess we will see.

 

For my friend, one of his two on Experian went away and one was "confirmed as accurate", which as mentioned was not the issue. :-)

 

I guess he will have to check in 40 days or so.

Message 19 of 26
JeffMO
Regular Contributor

Re: Questions About the New Rules for Medical Debt in Collections…

Update @ThomasJNewton 

 

The previously discussed transunion deleted 2 off my report both under $500. Redisputed the same with Equifax and they were both removed today. It took the while 30 days but my fresh report shows their gone. Hopefully within helps someone else out. 

 

Just be persistent that the collections are medical debt under $500 and you would like them removed per the new reporting rules. That's what I told them.

 

Cheers, Jeff






Capital one 500, Discover 11.1k. UMB Signature visa 18.5k, DW UMB card Auth user 16K. Citi Costco anywhere 26.6k, Amazon Prime 22.3K
BH/Comenity Photo 10k Lowes advantage 35k
AAOA 2y4m, oldest 5 years. 0 collections. 125k income, Util 1% inq 1/12. 1/24. 30/60/90 = 0, No derog's, clean file. Rebuilding started 4 years ago.
Starting Score: 560
Current Score: 795
Goal Score: 850


Take the myFICO Fitness Challenge
Message 20 of 26
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