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Advice on paying medical collection and removal from credit statement

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Advice on paying medical collection and removal from credit statement

I have a medical collection of around $700 from Dec 2014 on my credit statements which I did not know of. At that time, I was a coinsurer on my ex-husband's medical insurance with no income of my own. He did not pay the copayment for my hospital admission and it went into collections. While applying for a housing loan recently, I came to know about this collection. On calling the collection agency I was told that the hospital has a no settlement policy. So, I will have to pay the whole amount. They told me that, even if I went to the hospital for a settlement they will direct me back to the collection agency. Is that true that there is no scope of settlement on a lower amount? What else can I do to settle on a lower payment? Also, after settlement what is the best way to remove it from the credit statement?

 

The collection agency told me that they will not request a removal and will just inform the credit bureaus that it was paid. Will this improve my credit score?

Message 1 of 18
17 REPLIES 17
Valued Contributor

Re: Advice on paying medical collection and removal from credit statement

Hard to say for sure, when I was first notified of my medical bill I called immediately and paid.  That was in 2011.  The CA never updated and I just sat there and watched it age off last Nov.  I did not understand the laws, rules, whatever.  I would get something in writing and the ppl here on this forum can guide you best how to deal with that company.  I will tell you though, when it was removed I had a huge jump in my scores...I just don't know if it was reported as paid or not (it was paid) but it was definitely a baddie that weighed my scores down.  Good luck!

"LEAVE A MESSAGE AT THE BEEP"
Message 2 of 18
Member

Re: Advice on paying medical collection and removal from credit statement

Did you contact the CA or the credit bureau to remove it from the statement? Also, does it happen in the world of credit that they remove it from your credit file so that your credit score can improve?


@GApeachy wrote:

Hard to say for sure, when I was first notified of my medical bill I called immediately and paid.  That was in 2011.  The CA never updated and I just sat there and watched it age off last Nov.  I did not understand the laws, rules, whatever.  I would get something in writing and the ppl here on this forum can guide you best how to deal with that company.  I will tell you though, when it was removed I had a huge jump in my scores...I just don't know if it was reported as paid or not (it was paid) but it was definitely a baddie that weighed my scores down.  Good luck!


 

Message 3 of 18
Valued Contributor

Re: Advice on paying medical collection and removal from credit statement

Never assume what a collection agency says is true. I would call the hospital and see what they can do. They may be able to recall the debt and work with you regarding the amount owed. Always try to reach out to the original debtor prior to working with a collection agency. They will say or do anything to get you to pay. They purchase debts for pennies on the dollar so it doesn't matter to them. I would first see if you can work with the hospital and run through all of your options with them. Once you've exhausted that, then list the CA that has your account and we could help you as far as best tactics to get it removed off your record. Things like PFDs (pay for delete, all has to be in writing though), or settlements, etc. help achieve this.


Scores - All bureaus 750 +/-
TCL - Est. $275K
Message 4 of 18
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Senior Contributor

Re: Advice on paying medical collection and removal from credit statement

If it were me, I would call the hospital and ask them. I wouldn’t take the CAs word.
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Message 5 of 18
Member

Re: Advice on paying medical collection and removal from credit statement

Thanks so much for your input. I will try to contact the original creditor which is the Washington Hospital Center and will try to work out something. The CA is Transworld in my case


@xaximus wrote:
Never assume what a collection agency says is true. I would call the hospital and see what they can do. They may be able to recall the debt and work with you regarding the amount owed. Always try to reach out to the original debtor prior to working with a collection agency. They will say or do anything to get you to pay. They purchase debts for pennies on the dollar so it doesn't matter to them. I would first see if you can work with the hospital and run through all of your options with them. Once you've exhausted that, then list the CA that has your account and we could help you as far as best tactics to get it removed off your record. Things like PFDs (pay for delete, all has to be in writing though), or settlements, etc. help achieve this.

@xaximus wrote:
Never assume what a collection agency says is true. I would call the hospital and see what they can do. They may be able to recall the debt and work with you regarding the amount owed. Always try to reach out to the original debtor prior to working with a collection agency. They will say or do anything to get you to pay. They purchase debts for pennies on the dollar so it doesn't matter to them. I would first see if you can work with the hospital and run through all of your options with them. Once you've exhausted that, then list the CA that has your account and we could help you as far as best tactics to get it removed off your record. Things like PFDs (pay for delete, all has to be in writing though), or settlements, etc. help achieve this.

 

Message 6 of 18
Moderator

Re: Advice on paying medical collection and removal from credit statement

Hi @AM15 and welcome to the myFICO forums.

I merged the other thread that you started on this same topic into this one. Please do not cross-post in different forums or start multiple threads on basically the same subject. It is confusing to other members trying to assist you and is against forum rules.

Thank you for your understanding and cooperation.
Message 7 of 18
Member

Re: Advice on paying medical collection and removal from credit statement

Thanks...this is my first post. I thought I posted in the wrong forum so posted again on this.


@FinStar wrote:
Hi @AM15 and welcome to the myFICO forums.

I merged the other thread that you started on this same topic into this one. Please do not cross-post in different forums or start multiple threads on basically the same subject. It is confusing to other members trying to assist you and is against forum rules.

Thank you for your understanding and cooperation.

 

Message 8 of 18
Valued Contributor

Re: Advice on paying medical collection and removal from credit statement


@AM15 wrote:

Did you contact the CA or the credit bureau to remove it from the statement? Also, does it happen in the world of credit that they remove it from your credit file so that your credit score can improve?


@GApeachy wrote:

Hard to say for sure, when I was first notified of my medical bill I called immediately and paid.  That was in 2011.  The CA never updated and I just sat there and watched it age off last Nov.  I did not understand the laws, rules, whatever.  I would get something in writing and the ppl here on this forum can guide you best how to deal with that company.  I will tell you though, when it was removed I had a huge jump in my scores...I just don't know if it was reported as paid or not (it was paid) but it was definitely a baddie that weighed my scores down.  Good luck!


 


No, I didn't know you could do anything up until a few months ago.  I just refrained from looking and dwelling at my CK report....also, didn't know that was fako either until I found this forum.  Do your best to get everything in writing and if they agree to pay and delete get that bad boy in writing too.    P.S. that bill was only for $132.00 x-ray, I found in my records was paid to the CA and on CK (past credit reports) does not reflect the pymt.....those bu++heads.  Get it all in writing.  If I had the sense to know what to have done I would have done it or told them to eat it since it hurt me for so long.  oh well....good luck to you any-whoo Smiley Tongue

"LEAVE A MESSAGE AT THE BEEP"
Message 9 of 18
Member

Re: Advice on paying medical collection and removal from credit statement

To be frank Im also new to this credit world and was appalled looking at this collection on my statement. Thus, looking for a solution

Message 10 of 18
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