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Old Medical Collections - rebuilding for mortgage

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New Member

Old Medical Collections - rebuilding for mortgage

I'll start this off with - I know I should have done this sooner.  But in the near future, I'll be looking at buying a house.  Preferably by this summer.

 

I have four delenquients on my report currently. All Medical.  Live in Ohio.

 

All of them are with FFCC-Cleveland:

$62 / DOFD Oct.1.2012

$98 / DOFD Sep.12.2012

$98 / DOFD Jul.21.2012

$392 / DOFD Jun.21.2012

 

They are with two different OC's.

 

Would would the recommended course of action be on these?  Maybe call the OC and ask for a recall on the debt from the collector?  Would that work?  Essentially I would like them gone completely, and I've heard that FFCC is not very good with PFD's.  If so, what would my next step be? I have the funds, I just want to go about this the best way for credit score.

 

I know there's a million different possible actions, and I've been a bit overwhelmed scouring the site.

 

Thank you!

Message 1 of 3
2 REPLIES 2
New Contributor

Re: Old Medical Collections - rebuilding for mortgage

In some states from what I understand, acknowledgement of the debts validity (which would IMO occur by recalling the debt) can reset the SoL for legal action. That being said, although IDK Ohio's SoL laws, based on the dollar amounts and age of the debt I find it unlikely they or anyone else would sue.

Still, given that the DoFD is so old (meaning the debt should fall off your credit report, and is likely past any SoL for legal action) I might try a PFD with FFCC - Cleveland.

This doesn't require acknowledgement of debt validity and let's face it, policy and standard practice aside, it's in both parties interest to settle this.

Right now they likely can't sue and would spend far beyond what they would get back even if they could. Soon, it will not have any legal capacity to harm your credit as a result of this unpaid debt either. At that point, they will be a dog with no bite, just bark. If they intend to collect anything, they should logically do so while they still have some leverage (this doesn't mean they will - but it's worth a try.)

For you, giving a PFD for the debt even if it wasn't yours allows you to try for a home loan this summer rather than in March of 2020, not pushing your plans back almost a year might be worth a few hundred dollars to you.

Both parties benefit, but that doesn't mean they will do what's logical. They may be governed by policies which are designed not for the individual case by case scenario but rather to avoid certain unintended consequences and to maintain a consistent standard that over the long term benefits their best interest. Still, little harm in asking.

As far as recalling the debt to the O.C., they may or may not be anymore willing to do a PFD. I am no expert, but personally, if it were me I would try a PFD with the current D.C. and if that failed I would consider just waiting it out, letting the debt age off, then PIF and get the house next year. My logic for this does not come from the FDCPA or FCRA or any such regulations but rather that medical billing/Collection departments from my limited exposure tend to be slow, cumbersome, and often inaccurate. The debt will age off soon enough and recalling the debt introduces the possibility however minute that it may actually take longer for the medical centers payment departments to recognize the bill as PIF than for it to fall off your report and that recalling the debt itself may introduce the potential for reporting inaccuracies that may take longer to dispute.

I could be wrong here, so hopefully if nothing else this post-bump will give an opportunity for someone more knowledgeable/experienced to respond.



























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Message 2 of 3
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Moderator

Re: Old Medical Collections - rebuilding for mortgage

Medicals are some of the easiest to get removed. You would want to start with #3 since they are so old.

 

For unpaid medical debt that is reporting on your CR:

1. Call the OC and see if insurance can be billed, 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

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