collection account

babbles · ‎09-18-2011

My credit has been perfect for about 15 yrs now but just received a collection from a health care provider courtesy of Tricare not paying the bill which was $96.55. When I got the notice from BC Services out of Longmont, CO about 30 days ago, I right away paid $20 while I continued to persue Tricare for the payment. They reported through Experian which my score had been about 720 or so.

Questions are:

1. how much will this affect my score till I pay it off, which will be tomorrow? Bal ($76).

2. spoke with them (BC Services) Friday and they stated they will report it as a zero balance. Will that reinstate my credit score with experian?

3. they also said that upon supporting documentation from Tricare that it was a billing error, they would remove it completely. Will that have the same effect on my score as the $0 balance. I called TC on Friday and they said for the 100th time, they will do an adjustment for that amount and I don't count on it.

4. is it possible they may have reported to the other bureaus and I just don't see it yet?

I was completed devasted to see a collection account and couldn't sleep well the other night. As I questioned to the rep, i thought they would do an harrassing phone call or another letter before they went straight to the credit file? Thanks.

RobertEG · ‎09-18-2011

A collection is a major derog, and has serious affect on your credit score.

Paying the debt wont result in removal of any prior credit reporting, including the delinquencies reported by the OC that led up to the collection, and the reporting of the collection by the debt collector. The reporting of a $0 collection balance by the debt collector and a $0 debt balance by the OC wont restore the damage done by their prior reporting. Deletion of their derogatory reporting is necessary to remove its negative scoring affect.

If, however, you provide the documentation they requested and they delete the collection from your CR, then its negative effect will be gone.

If they have reported to another CRA, once that CRA enters their reporting, it will thereafter be included in any CR they issie. They cant report to a CRA and keep it secret.

Anonymous · ‎09-18-2011

@babbles wrote:
My credit has been perfect for about 15 yrs now but just received a collection from a health care provider courtesy of Tricare not paying the bill which was $96.55. When I got the notice from BC Services out of Longmont, CO about 30 days ago, I right away paid $20 while I continued to persue Tricare for the payment. They reported through Experian which my score had been about 720 or so.

Questions are:

1. how much will this affect my score till I pay it off, which will be tomorrow? Bal ($76).
2. spoke with them (BC Services) Friday and they stated they will report it as a zero balance. Will that reinstate my credit score with experian?
3. they also said that upon supporting documentation from Tricare that it was a billing error, they would remove it completely. Will that have the same effect on my score as the $0 balance. I called TC on Friday and they said for the 100th time, they will do an adjustment for that amount and I don't count on it.
4. is it possible they may have reported to the other bureaus and I just don't see it yet?

I was completed devasted to see a collection account and couldn't sleep well the other night. As I questioned to the rep, i thought they would do an harrassing phone call or another letter before they went straight to the credit file? Thanks.

1. Paying the collection won't help your score unless you also get it removed from your CR.

2. See 1.

3. Having it removed completely will help your score, paying it and not having it removed will not. Do not pay it until you get a written agreement to have it deleted.

babbles · ‎09-18-2011

Thank you for the quick reply. Do most CA offer that type agreement woud you say? What's the incentive for them to remove it by way of agreement?

haulingthescoreup · ‎09-18-2011

They're not supposed to do it per their agreements with the credit bureaus. But the incentive is that they get their money if they're willing to work with you, so there are those who will do this. Certainly not the rule, though.

CA's buy debts for pennies on the dollar, so if you're willing to pay the full amount, they make a huge profit, even factoring in the costs of nagging you, running an office, settling lawsuits, etc.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007

RobertEG · ‎09-19-2011

Caveat on a holdout until they accept a PFD........

Know whether or not the debt is still within SOL. You can safely hold out if they can no longer recover through the courts. If they can, you take that risk.

babbles · ‎09-20-2011

I am absolutely devasted! I pulled my Experian credit file this afternoon and my score dropped an amazing 67 points!!!!!! From 748 to 681!!! Which is indicated on the report itself. Unbelievable what this $76.55 collection account did to me!!! I disputed it as paid in full to experian at the same time, so what do you think the response will be back from the CA? They agreed to pay for deletion. Next I have to file a grevience/ complaint to Tricare. Those bastards had previsouly denied the claim stating that the tax ID for the therapist had changed even though they authorized the referrals and I had 4 previous sessions with the same provider!!!! I can not believe my score dropped that much!! What in the world dictated it to fall so much for such a small balance???? Or maybe it wasn't the balance that mattered???

Booner72 · ‎09-20-2011

Babbles, the balances doesn't matter. :*(

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720

MarineVietVet · ‎09-20-2011

@babbles wrote:
I am absolutely devasted! I pulled my Experian credit file this afternoon and my score dropped an amazing 67 points!!!!!! From 748 to 681!!! Which is indicated on the report itself. Unbelievable what this $76.55 collection account did to me!!! I disputed it as paid in full to experian at the same time, so what do you think the response will be back from the CA? They agreed to pay for deletion. Next I have to file a grevience/ complaint to Tricare. Those bastards had previsouly denied the claim stating that the tax ID for the therapist had changed even though they authorized the referrals and I had 4 previous sessions with the same provider!!!! I can not believe my score dropped that much!! What in the world dictated it to fall so much for such a small balance???? Or maybe it wasn't the balance that mattered???

Did you possibly mean Equifax instead of Experian? I ask because no one has been able to buy their own Experian FICO score since February of 2009. Creditors can pull Experian and also there is a CU (PSECU) in Pennsylvania that supplies that information to it's members only.

If this score drop is for a non-FICO (FAKO) score such as a "Plus" score then you really don't know what effect this had on your FICO's.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

babbles · ‎09-20-2011

I went to Experian and pulled a report and it showed the collections account, when it went to effect, and clearly stated that my scored dropped by 67 points. How can I tell if this a FAKO?