Help with Medical Collection Trade Line removed

[Anonymous]

When I went to pay my mortgage, I noticed my Fico score dropped over 80 points. I immediately looked into it and found a medical bill in collections from a CA called Credit Collection Svcs (PO Box 9134 Needham, MA 02494 telephone# 603-570-4294). I called CCS and asked what this bill was regarding. They informed me it pertained to an unpaid medical bill to a company called LABCORP (the original creditor listed). The representative with CCS gave me very little information on what this was regarding, however, did give me the account/website information for LABCORP. After looking into it, it was legitimate. I then called back to CCS and offered to pay the balance in full, as long as they could send me something stating the amount is Paid in Full and that item would be removed. The representative from CCS informed me they do not do this, but to call LABCORP and see if they will? I then called LABCORP and basically asked the same thing. I was told they don't do this either? I don't have any issue paying the bill, however, I'm confused on who to pay and if I do pay without getting a PFD, I'm assuming my credit will be damaged for a while? Any help regarding how to proceed would be greatly appreciated. 

[OmarGB9]

Courtesy of @gdale6:

@gdale6 wrote:

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@Anonymous wrote:

Hello everyone!!

I would like to get some advice about paying medical collections. Do you recommend to pay them before qualifying for a mortgage? Can you still qualify for a mortgage with medical collections? My LO said not to pay any of them unless requested at closing. Any thoughts?

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If you are in an active loan situation I would do what they say, if not

Medical collections are some of the easiest to get removed from your CRs, here are the steps that you should follow to address them:

1. Call the OC and see if insurance can be billed, (or-rebilled), collections ultimately paid by insurance get removed per new rules that came from CRAs settlement with 22 state AGs. If not then
2. see if you qualify for Charity Care, if not then
3. ask that they recall the collection in exchange for full payment
4. Send the reporting CA a PFD offer
5. Google the HIPAA Process and contact its creator for help, this process cannot be discussed in any forum of myFico.

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[gdale6]

The process to remove medical collections is posted above. This being under $100 Fico 8 wont even take it into consideration as its considered a nuisance collection if less than $100 and Fico 9 wont either for any medical collection. Its the older models that will ding you for it.

[Anonymous]

1. Call the OC and see if insurance can be billed, (or-rebilled), collections ultimately paid by insurance get removed per new rules that came from CRAs settlement with 22 state AGs. If not then (They cannot)
2. see if you qualify for Charity Care, if not then (I don't)
3. ask that they recall the collection in exchange for full payment (Tried that. OC said they can't.)
4. Send the reporting CA a PFD offer (Tried that too. CA said they no longer do PFD)
5. Google the HIPAA Process and contact its creator for help, this process cannot be discussed in any forum of myFico. (Googled the process with no luck due to the situations stated are not applicable with my particular deal.)

I have no problem paying either the CA or the OC the full amount. I just don't want to pay one of them and have it screw me for years down the road. If I pay the bill in full, but do not get the collection removed, it will only bring my score up a few points compared to how it already hit my credit and dropped my score almost 100 points. 

[Anonymous]

The bill is over $100 but under $500. It's has dinged my credit score in all 3 bureaus. 

[FireMedic1]

CCS or Resugent will PFD. From their website:

• If an account is paid in full or settled in full after we begin credit reporting, we will submit a delete request to the credit reporting agencies after the payment resolving the account is processed. Note: We do not control the timing within which the credit reporting agencies process our requests.
• If an account is paid in full or settled in full and the payment resolving the account is processed before we begin credit reporting, we will not report the account to the credit reporting agencies.
• If final payment is cancelled or reversed for any reason, and the account is still eligible to be credit reported, we will consider the account as active to the credit reporting agencies.

[Credit-hoarder]

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@FireMedic1 wrote:

CCS or Resugent will PFD. From their website:

• If an account is paid in full or settled in full after we begin credit reporting, we will submit a delete request to the credit reporting agencies after the payment resolving the account is processed. Note: We do not control the timing within which the credit reporting agencies process our requests.
• If an account is paid in full or settled in full and the payment resolving the account is processed before we begin credit reporting, we will not report the account to the credit reporting agencies.
• If final payment is cancelled or reversed for any reason, and the account is still eligible to be credit reported, we will consider the account as active to the credit reporting agencies.

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Is the part underlined and in bold still pertinent? I just got hit by the same 2 companies a few weeks ago (LABCORP & CCS). There was a paperwork error resulting in LABCORP not being paid by my insurance. Upon seeing this on my reports I paid it immediately and was going to see what steps I can take to have it possibly removed. But if the above is true--they will remove it themselves? I've never known a collection agency to do that themselves without some teeth pulling. I looked on the CCS website and wasn't able to find the above verbage--so if someone could shed more light or confirm this I'd appreciate it. Thanks in advance.