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PFD - proactive or reactive

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Tito1183
Regular Contributor

PFD - proactive or reactive

Looking for advice, I sent three PFD letters for medical collections and before being contacted the collections fell off my report. Scores have gone up to 700 because of this and I want to keep that way.

Received notification from 1 of 3 that it was a valid debt, which I knew. Called today and settled for 60% of balance owed because they sent me written correspondence and I didn’t want it back on my credit report. I received a letter indicating the settlement amount and since it’s paid and not on my report I was told they had no reason to report it again.

The other 2 I haven’t heard from, should I proactively reach out and try to settle so that I keep off my report or should I wait to hear from them? At this point it’s not a PFD because they’ve been deleted prior to payment.
Message 1 of 7
6 REPLIES 6
RobertEG
Legendary Contributor

Re: PFD - proactive or reactive

Was it paid within 180 days of the DOFD?

If so, new CRA policy for medical collections prevents inclusion in you CR even if the debt collector does report.

Message 2 of 7
Tito1183
Regular Contributor

Re: PFD - proactive or reactive

DOFD - date of deletion?

 

Im not understanding what you’re referring to regarding the policy.

Message 3 of 7
Remedios
Credit Mentor

Re: PFD - proactive or reactive


@Tito1183 wrote:

DOFDD - date of deletion?

 

Imm not understanding whatyou’ree referring to regarding the policy.


Date of first delinquency 

 

With medical debt, I am not sure if that's date of first statement, date first statement went past due, date of service or some other date. 

 

Maybe @RobertEG  could shed some light on what's consideredDOFDD for medical bills. 

 

I know our practice does not even refer an account for collections till they are 120 or more past due  

 

Message 4 of 7
Tito1183
Regular Contributor

Re: PFD - proactive or reactive

Gotcha, these are several years old but are the last negative items on my rebuild.  

 

Since they’ve been deleted but I haven’t received any information, I was wondering if I should call to settle before they show up again or wait for the verification letter like 1 of the 3 sent me.

Message 5 of 7
RobertEG
Legendary Contributor

Re: PFD - proactive or reactive

DOFD is the date of first delinquency, which is the date of the first delinquecy in the chain of delinquency that led up to a reported collection or charge-off.  For a medical bill. it is the agreed billing due date set when services were rendered.

 

In a recent settlement agreement between the big-3 CRAs and the offices of the AG of numerous states, the CRAs agreed not to include medical collections in their credit reports until the period of delinquency has reaced more than 180 days from date of first delinquency, and to additionally remove any medical collection that is ultimately paid via insurace, regardless of the period since DOFD.

Message 6 of 7
Remedios
Credit Mentor

Re: PFD - proactive or reactive

Thank you for clarification. I was never really clear on medical DOFD. I really appreciate the response. 

Message 7 of 7
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