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My excellent credit score ruined by medical collection. Please help!

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Anonymous
Not applicable

My excellent credit score ruined by medical collection. Please help!

Hello,

 

My credit score went down by almost 95 points due to a medical collection from 'Credit Collection CA'.

 

Collection account (on experian) was opened on 7/1/2019 and it went into collection on 12/1/2019. I have read online that they should allow at least 180 days before it affects my credit score but it's been less than that since the collection account was opened. Can someone please let me know if I'm missing anything?

 

The collection agency are confidently telling me that they will remove the collection account once I pay them and it should go away from my credit report. They told me that medical collections fall off within 70-90 days after payment. Can someone please confirm if this is actually the case?

 

I don't have a problem paying them if the account gets removed from my credit report. I would really appreciate some help with this matter since it's the first time I'm having to deal with such issue.

Message 1 of 11
10 REPLIES 10
Anonymous
Not applicable

Re: My excellent credit score ruined by medical collection. Please help!

Sorry it's "CREDIT SERVICE CO" which is the collection agency.

Message 2 of 11
Jnbmom
Credit Mentor

Re: My excellent credit score ruined by medical collection. Please help!

If they are willing to pay for delete then by all means take that route. Just make sure you get an agreement in writing that they will delete once it is paid.

And please refrain from posting another thread on the same subject. It can get confusing with multiple threads on the same subject .
EXP 780 EQ 791TU 795
Message 3 of 11
Brian_Earl_Spilner
Credit Mentor

Re: My excellent credit score ruined by medical collection. Please help!

VantageScore ignores medical collections for 180 days to allow insurance and billing to figure it out. It still shows up on your reports. FICO does not ignore medical collections.

    
Message 4 of 11
Anonymous
Not applicable

Re: My excellent credit score ruined by medical collection. Please help!

Hey thanks a lot for the fast response! 

 

They are telling me that they won't give me anything in writing until I pay them, however they said once I pay them they will report the account as closed and it should fall off my credit report in 7-90 days. Do you have any suggestion? I'm not sure if I should trust them or not.

 

Is there a law that medical collection will be removed from credit report once paid? I was reading this article but not sure if this is just for FICO 9 model. My score seems to be report on FICO 8 model on experian

https://www.experian.com/blogs/ask-experian/can-medical-bills-affect-credit-report/

"...In addition, all three major credit scoring agencies will remove medical debt from your credit history once it is paid off by an insurer."

Message 5 of 11
Brian_Earl_Spilner
Credit Mentor

Re: My excellent credit score ruined by medical collection. Please help!

The bureaus will not remove anything reported to them that is accurate. What you quoted is removal after the insurance company has taken care of the charge. It's to fix billing issues. If that's what's happening with you, you need to contact your insurance company and whatever medical office that's sending you to collections. If you simply didn't pay a bill, the only way it's getting removed is if you pay for delete. Some companies have it in writing on their website if they will delete after paying (portfolio, Midland). If they don't have it on their website, I would get it in writing before paying.

    
Message 6 of 11
satio
Frequent Contributor

Re: My excellent credit score ruined by medical collection. Please help!


@Anonymous wrote:

Hello,

 

My credit score went down by almost 95 points due to a medical collection from 'Credit Collection CA'.

 

Collection account (on experian) was opened on 7/1/2019 and it went into collection on 12/1/2019. I have read online that they should allow at least 180 days before it affects my credit score but it's been less than that since the collection account was opened. Can someone please let me know if I'm missing anything?

 

The collection agency are confidently telling me that they will remove the collection account once I pay them and it should go away from my credit report. They told me that medical collections fall off within 70-90 days after payment. Can someone please confirm if this is actually the case?

 

I don't have a problem paying them if the account gets removed from my credit report. I would really appreciate some help with this matter since it's the first time I'm having to deal with such issue.


Credit Service Company based out of Colorado Springs, Colorado acts as both a collection agency as well as offers general billing services to doctors, clinics, and other healthcare companies.

 

My experience while helping a family member who had a few items from CSC is as follows:

 

Once you pay the amount owed you will receive a letter confirming  the payment amount received and that the invoice/account has been settled in full.

 

The letter will also indicate that the CRAs will be updated to record the account as being paid and that the matter will be returned to the original creditor. The letter also states that at the time of returning the paid item to the original creditor, CSC will request that the item be removed from your report.

 

So it is similar in nature to Portfolio Recovery and others, you will see the collection item marked as paid and 0 balance first followed by it being removed altogether within 30-60 days from time of payment.

 

 



Message 7 of 11
stw715
Regular Contributor

Re: My excellent credit score ruined by medical collection. Please help!

From National Consumer Assistances Plan launched back in early 2015...

 

  • Medical debts won’t be reported until after a 180-day “waiting period” to allow insurance payments to be applied. The CRAs will also remove from credit reports previously reported medical collections that have been or are being paid by insurance.

The 180 days waiting period before it can appear on your credit report (whether or not it will affect your credit score is separate issue), starts from the original bill was due, and not from whenever collection account was opened. It would be removed by Credit Bureau only if it was later paid by your insurance and not by you. So the medical collections doesn't automatically falls off your credit report whenever you paid it, the reporting party would need to remove it.

 

I would first contact the original creditor/service provider to see if they are willing to recall the collection and you pay them directly.





Message 8 of 11
satio
Frequent Contributor

Re: My excellent credit score ruined by medical collection. Please help!

^^^ Yes, first is to contact the original party and indicate that you would like for the account to be recalled from CSC and that you wish to pay them directly in full.

 

In the event that is not successful (which was the case in my example), then making payment to CSC should have the same outcome as what I shared above.

 

 



Message 9 of 11
Anonymous
Not applicable

Re: My excellent credit score ruined by medical collection. Please help!

If the original creditor accepts to recall the debt, would it automatically fall off my credit report? Does anyone have any experience with debt being recalled from collection companies?
Message 10 of 11
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