The collection should come off whether paid in full or settled.
As for your second question, yes it's true, but it doesn't always work. But it's certainly worth a try!
Also, the medical collections under $500 should be coming off sometime this year. The new rules didn't specify but when, just in the first half of 2023 (or something to that effect).
@Coolriver wrote:This is the year I am getting my financial house in order after illness and a death in the family. My four medical collections are really holding me back. Two are over $500, and two are under $500. I'm wondering why the two collections under $500 are showing on my CK credit report. I thought medical collections under $500 are not supposed to show anymore. Maybe they show for me because the CK report is for my information, but if a lender pulled my report they would not show?
For the two medical collections over $500, I know they are supposed to come off the report when they are paid. Is that true only when they are paid in full? Or do they also come off if they are settled?
One more question--I read somewhere in this wonderful site that you can go to the hospital and ask them to recall the debt from the collection agency, which will take the collection off your report, and then you can make payments to the hospital. That sounds almost too good to be true. Does that really work?
Thank you, all!
I would open a dispute on CK and state the purpose is because it's under $500. It can't hurt and may expedite things. You can dispute right on CK or call them. I found it was more useful to call and speak to an agent but my case was a little more complex. This should be a simple dispute. As the previous person stated, it may come off eventually but I wouldn't wait. Especially bc nothing is more powerful than seeing results when you are rebuilding. Makes you feel great. I would say to enjoy every little success and achievement along the way and stay the course. DON'T LOSE HOPE AND STAY THE COURSE even when things don't happen instantly. It's a process but u will see progress.
@ForwardLooking wrote:I thought there were some stipulations on the upcoming medical debt rules and that only debts with an original amount under $500 would not be reported. So if the original amount owed was $600, and you paid $200 to get it under the $500 threashold, it would still report.
Side note, I did have an unpaid medical collection for $94 that fell off my report about a week ago. I had disputed it because it was my ex's debt and did not pay. It was on my report for a long time, so not sure if the 4 year old dispute removed it or if the new rules are starting to take effect.
Correct. What OP was asking is if you settle in full (in other words, get the CA to agree to erase the FULL debt in exchange for a lesser amount), will that still be deleted.
@steph995 wrote:Correct. What OP was asking is if you settle in full (in other words, get the CA to agree to erase the FULL debt in exchange for a lesser amount), will that still be deleted.
Thanks for providing this clarification. I found this thread because of a similar situation. I'm also curious whether these new medical collection rules would affect how I should negotiate with the collection agency?
Mine is for $513 from Phoenix Financial. Based on what I've read in the forum, it sounds like they will do a PFD and will communicate by email. However, I've read some posts saying that they will only email a settlement offer, not a PFD offer.
Either way it shouldn't matter. Paid medical debt should come off regardless as per the new CRA rules. And if it's under $500, by midyear this year, it shouldn't report at all even if it remains unpaid.