So...... I'm still working on my wife's credit..
In August I began to get all our acts together slowly..... I knew of at least 2 debts we owed, and I had the money ready. One of these was a co-pay debt at the local hopsital. I called them in September and tried to pay, but was told there was no account and no record of owing anything. I asked them to check if it went to collections or whatnot, and they put me on hold for a while and said no, nothing. I checked my name (as primary insurance holder), I checked in my wife's name - nothing. I insisted to the lady, "I KNOW I owe you money" and she insisted I don't.
Guess what came in the mail 2 days ago? From a debt collection agency.
Where would you guys begin? It's our debt, it's less than $500, I know I owe it... I really am just miffed it ended up this way.. It's not on anyone's credit report as of yet. I know medical is a little different... but it should have never gotten to this point. Should I bother calling the hopsital again? Should I send the DV letter? I'd rather it just be over with so we can move on and not have to maybe see it re-appear in 2 years.
Thanks
@Anonymous wrote:I'd call them up, tell them you're not admitting to ownership, but are willing to pay right now in lieu of reporting. If they agree, pay it and be done.
Their initial letter is a settlement offer of 25% off. Should I pay in full? I was reading medical debt deletes after pay regardless?
@Milano wrote:
@Anonymous wrote:I'd call them up, tell them you're not admitting to ownership, but are willing to pay right now in lieu of reporting. If they agree, pay it and be done.
Their initial letter is a settlement offer of 25% off. Should I pay in full? I was reading medical debt deletes after pay regardless?
I can't comment on medical debts, but it's easy enough to call them and ask if paying the offer will settle the debt and prevent it from being reported to credit bureaus. That's what I'd do.
@RobertEG wrote:The big-3 CRAs entered into a settlement agreement back in 2017, one part of which involved the posting of medical collections by the CRAs.
They agreed, even if reported by a debt collector, NOT to include any medical collection in any consumer report until the debt remained delinquent for at least 180 days from date of initial delinquency. Additionally, if paid in full by insurance, even if after the 180-day grace period, any medical collection would be removed.
If you pay prior to 180 days from date of initial delinquency, it will never show in your credit report.
We're way past 365 days on this one, let alone 180. 🤦♂️ Now I'm more concerned.. So I guess I should try to PFD?
EDIT:
Call the hospital and they couldn't find the bill again. I begged the lady is there anybody else I can speak to who might know something about this. She gave me a extension to speak to, I called they found a bill right away I paid in full. They told me call collections agency and see if there's any interest I owe them on the money and that the bill has been paid in full to the original creditor. I hope that this goes well.
@Milano wrote:
@RobertEG wrote:The big-3 CRAs entered into a settlement agreement back in 2017, one part of which involved the posting of medical collections by the CRAs.
They agreed, even if reported by a debt collector, NOT to include any medical collection in any consumer report until the debt remained delinquent for at least 180 days from date of initial delinquency. Additionally, if paid in full by insurance, even if after the 180-day grace period, any medical collection would be removed.
If you pay prior to 180 days from date of initial delinquency, it will never show in your credit report.
We're way past 365 days on this one, let alone 180. 🤦♂️ Now I'm more concerned.. So I guess I should try to PFD?
EDIT:
Call the hospital and they couldn't find the bill again. I begged the lady is there anybody else I can speak to who might know something about this. She gave me a extension to speak to, I called they found a bill right away I paid in full. They told me call collections agency and see if there's any interest I owe them on the money and that the bill has been paid in full to the original creditor. I hope that this goes well.
Well you should have had them recall the collection as that would have guaranteed it wont appear on your CR. Now it could appear as a paid collection. The collectors may decide not to report its up to their good graces now, Here are the steps to follow in the future if more medical collections appear.
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.
Just a follow-up to this, the debt collector informed us that they never purchased the debt they were just collecting on behalf of the hospital.
The hospital has notified them that the original sum has been paid in full and they have stopped all efforts and closed/canceled the account. They told us nothing will show up on a credit report and so far nothing has.