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Medical collection, under $100, effect on scores

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Frequent Contributor

Medical collection, under $100, effect on scores

Just got notification from Transunion, Equifax and Experian of a medical collection for $44 from Alliance Credit of Marshfield, WI.

The original creditor was Aurora Advanced Health Care. I immediately paid it off DIRECTLY with Aurora when I saw this on my report the other day.

 

My score has not budged from Transunion or Equifax, but according to Experian and their free app and monitoring service, I have gone down 16 points!

 

I have already begun disputing the debt. Also filed a complaint with the CFPB about all 3 agencies for improper reporting. 

 

Any other tips?

Message 1 of 11
10 REPLIES 10
New Contributor

Re: Medical collection, under $100, effect on scores

You would have had to have Aurora recall the collection (authority) from Alliance prior to paying. Otherwise Alliance still had collection authority and can legally report to the CRA's. There is a chance that Alliance reporting will be removed but there is also a chance that it will be updated to reflect a zero balance but remain on your report. 

Good luck and hopefully for such a small amount it will be removed.

FICO 8

Message 2 of 11
Frequent Contributor

Re: Medical collection, under $100, effect on scores

I tried multiple times to have Alliance send the debt back to Aurora.

 

I kept sending Aurora small payments in the mail and they kept cashing my checks. Unfortunately I only got the balance down to $44 and that's when the collections account finally hit my credit report last week.

 

Whenver I would call Aurora to ask them about my balance they would keep saying "your balance is 0, and it has been sent to a collections agency"

 

When I finally got a manager, last week, she took the payment over the phone to get it to zero. But that's after it's already hit my 3 reports. Like I said, no score drop on TU or Equifax, yet, but a 16 point drop on Experian.

 

Hoping it goes away or doesn't effect those other 2 scores. 

Message 3 of 11
Moderator

Re: Medical collection, under $100, effect on scores

Fico 8 ignores collections under 100, Fico 9 disregards medicals all together no matter the amount. If you paid this off before 6 months from DoFD it has to be removed under new laws for medical collections.

"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

- Rhonda Byrne

Message 4 of 11
Frequent Contributor

Re: Medical collection, under $100, effect on scores

I guess I don't know what the date of first delinq. was.

 

If FICO 8 and FICO 9 are ignoring this in their scoring, why did my Experian go down 16 points the day after the item hit my report? There were no other reasons for it to.

 

 

Message 5 of 11
Frequent Contributor

Re: Medical collection, under $100, effect on scores

Bumping..

 

Asking for comments

Message 6 of 11
Moderator

Re: Medical collection, under $100, effect on scores


@Hockeypnc1 wrote:

I guess I don't know what the date of first delinq. was.

 

If FICO 8 and FICO 9 are ignoring this in their scoring, why did my Experian go down 16 points the day after the item hit my report? There were no other reasons for it to.

 

 


This was just the trigger for a score update, something else changed and caused it.

"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

- Rhonda Byrne

Message 7 of 11
Frequent Contributor

Re: Medical collection, under $100, effect on scores

I should note that the point drop was on Experian (via their app) and Equifax (via CreditKarma)

 

 

Message 8 of 11
Frequent Contributor

Re: Medical collection, under $100, effect on scores

Well, thanks to complaints with the BBB, the CFPB, and disputing the collection accounts with all 3 CRAs, the item has been removed from all three reports. This is good. It also caued the scores to go back up to what they were before.

 

Experian took the longest. But they fixed it on their end too.

 

 

 

Message 9 of 11
Senior Contributor

Re: Medical collection, under $100, effect on scores

Congrats. C-Ya collections! Good job and great advise as usual....





My posts are JMHO. I DO NOT claim to be a FICO expert. Just sharing my experiences from rebuild to recovery after BK DC. My siggy is not to brag at all. Just to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 10 of 11
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