Error in Reporting

[Anonymous]

I was billed over $3000 by a hospital for services that should have been covered by my insurance company. I contacted the insurance company and explained the error, however I still had to go through the appeals process. A few months later the insurance company recognized the error and apologized saying that the original claim was incorrectly processed.  I didn't owe the money after all and they paid. However, during this time it went to collections and now I have a major mark on my credit score. It went down 189 points. I tried contacting the collection agency and sent them the paperwork they needed indicating that I was not responsible for payment. The insurance company also sent them the same information including a letter indicating it was an error. But the collection agency still hasn't removed it from my report. What do I do now?? 

[gdale6]

Welcome to the board. I would dispute it with the CRAs and send them proof it was paid by insurance, they entered into a consent decree concerning medical collections thatget paid by insurance and that they wouldnt be reported, this agreement was negotiated here    http://www.ag.ny.gov/press-release/ag-schneiderman-announces-groundbreaking-consumer-protection-sett...

[Anonymous]

Have you contacted the facility where you received services?  That might be the fastest way to get it removed since they could recall the debt from the collection agency and have them removed it from your reports.  

[Anonymous]

I reported it to the CRA and uploaded supporting document (letter of apology for error made).  The case was reviewed and resolved within 24 hours.  Does that sound right.  The CRA did not change the status and did not remove the debt.  Also, it is not categorized as Medical Debt.  It is just coded with a "C" for collections (I'm not sure if that matters).  I'm not sure what to do from here besides dispute the claim again.  The medical insurance agents have contacted the collection agency to explain that it was an error on their part, but the collection agency is not budging. 

[gdale6]

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@Anonymous wrote:

I reported it to the CRA and uploaded supporting document (letter of apology for error made).  The case was reviewed and resolved within 24 hours.  Does that sound right.  The CRA did not change the status and did not remove the debt.  Also, it is not categorized as Medical Debt.  It is just coded with a "C" for collections (I'm not sure if that matters).  I'm not sure what to do from here besides dispute the claim again.  The medical insurance agents have contacted the collection agency to explain that it was an error on their part, but the collection agency is not budging. 

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Well if its not showing as a medical debt then the consent decree settlement doesnt apply. I would first file a complaint with the CFPB on the CA concerning the improper reporting of a medical debt and once that is resolved then file a dispute again with the CRA sending in your proof of payment by the ins. co. and the consent decree. One other thing I believe the ins. co. has to resolve it within a 6 month period, if it went past that then they are not under obligation to remove it. 

Adding: If you have not yet tried a GW letter to the CA asking for removal of the TL I would first attempt that before doing what I said above.