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Getting Collection Deleted That Was NOT My Fault

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Anonymous
Not applicable

Getting Collection Deleted That Was NOT My Fault

As I understand it, collections stay on your record even after they've been resolved. The issue I'm dealing with is, I went to a hospital for minor surgery and the claim they sent to my insurance was rejected. This was later deemed to be the insurance company's fault, but because of the length of time it took to resolve the issue, it was reported to collections briefly.

 

Since FICO scoring holds onto collections for 10 years (correct me if I'm wrong)? I'd like to know if there's anyway to have this collection completely expunged from my FICO score. I should mention, this happened almost 3 years ago but I just found out FICO doesn't completely remove collections even after they've been resolved.

Message 1 of 10
9 REPLIES 9
rmduhon
Valued Contributor

Re: Getting Collection Deleted That Was NOT My Fault

7 years from the DoFD (date of service for medical accounts). How was this resolved?
Message 2 of 10
RobertEG
Legendary Contributor

Re: Getting Collection Deleted That Was NOT My Fault

If the debt was ultimately paid by a medical insuror, it can be removed by the CRA under their new (2015) policy, as set forth in their agreement with the AGs of several states, and now incorportated into their "National Consumer Assistance Plan."

Message 3 of 10
Anonymous
Not applicable

Re: Getting Collection Deleted That Was NOT My Fault


@rmduhon wrote:
7 years from the DoFD (date of service for medical accounts). How was this resolved?

I was laid off from my job, but my employer agreed to extend me an extra month of insurance past my lay off. They told the insurance and paid them accordingly, but the insurance made a mistake and it wasn't until I received a $2.7k bill that I knew something was wrong. By the time everything was resolved, it had been reported to collections without my knowledge (I wasn't checking my credit as diligently back then, Aug 2014).

Message 4 of 10
Anonymous
Not applicable

Re: Getting Collection Deleted That Was NOT My Fault


@RobertEG wrote:

If the debt was ultimately paid by a medical insuror, it can be removed by the CRA under their new (2015) policy, as set forth in their agreement with the AGs of several states, and now incorportated into their "National Consumer Assistance Plan."


I'll look into this, thanks for the heads up.

Message 5 of 10
rmduhon
Valued Contributor

Re: Getting Collection Deleted That Was NOT My Fault

So it was paid by the insurance?
Message 6 of 10
Anonymous
Not applicable

Re: Getting Collection Deleted That Was NOT My Fault


@rmduhon wrote:
So it was paid by the insurance?

Yes, they paid the claim after my employer showed proof they had paid them for that month.

Message 7 of 10
rmduhon
Valued Contributor

Re: Getting Collection Deleted That Was NOT My Fault

Then refer the RobertEG's post
Message 8 of 10
Anonymous
Not applicable

Re: Getting Collection Deleted That Was NOT My Fault


@RobertEG wrote:

If the debt was ultimately paid by a medical insuror, it can be removed by the CRA under their new (2015) policy, as set forth in their agreement with the AGs of several states, and now incorportated into their "National Consumer Assistance Plan."


Sorry, it's been a while and its a little more complex than I originally remembered.

 

Initially they sent me the $2.7k bill, which was corrected to $450 after insurance paid their portion of the claim.

 

The $450 bill was then reduced to $0 in the form of a grant from the hospital.

 

Again, the collections was due to a billing dispute, but Eexperian seems to report the Collection as "Paid" while the other two agencies removed them from my record.

 

Is there any way to have this removed entirely from my Experian Report?

Message 9 of 10
RobertEG
Legendary Contributor

Re: Getting Collection Deleted That Was NOT My Fault

That is kinda a shady area.

Technically, if the insurance did not pay the entire debt, it is not part of their new policy.

However, I would argue that the action of the hospital was not their payment of part of the debt, but rather their reduction of the amount of the debt.

Thus, after their evaluation of the debt, the new debt was paid by the insuror.

 

I would definately argue that the net debt that was ultimately determined to be due was paid by insurance, as you did not pay anything out of your pocket.

Yes, I would contact the CRA and request removal under their National Consumer Assistance Plan, arguing that the insurance paid the determined debt.

Message 10 of 10
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