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Same debt listed twice

HypatiaWeeping
New Visitor

Same debt listed twice

I have a medical debt of $2.693 through Medicredit since 2012 that is currently in collections.  I expect to be able to pay this off in November.  As of last month, the same debt showed up in duplicate under a Texas law office.  Who actually owns the debt, or am I now stuck paying the same debt twice?  I did not even know this debt existed until a few months ago, my mistake for not pulling my credit scores regularly, and now I worry that my extra budgeting to be able to pay it off is never going to end.  

 

Thank you.

Message 1 of 3
2 REPLIES 2
gdale6
Moderator

Re: Same debt listed twice


@HypatiaWeeping wrote:

I have a medical debt of $2.693 through Medicredit since 2012 that is currently in collections.  I expect to be able to pay this off in November.  As of last month, the same debt showed up in duplicate under a Texas law office.  Who actually owns the debt, or am I now stuck paying the same debt twice?  I did not even know this debt existed until a few months ago, my mistake for not pulling my credit scores regularly, and now I worry that my extra budgeting to be able to pay it off is never going to end.  

 

Thank you.


Welcome to myFico Smiley Happy

 

No you dont pay it twice and I would dispute the older CA reporting for "Has no collection authority". Only 1 CA or other type of collector is allowed to report on your CR at a time per CRA rules.

 

For unpaid medical debt that is reporting on your CR:

 

1. Call the OC and see if you qualify for Charity Care
2. If not then ask that they recall the collection in exchange for full payment
3. Send the reporting CA a PFD offer
4. Google the HIPAA Process and contact its creator for help

Message 2 of 3
RobertEG
Legendary Contributor

Re: Same debt listed twice

The creditor can report the balance of a debt owed to them under their OC account reporting.

That reporting includes any derlinquencies and other reported derogs, as well as the current amount of the debt that is owed to the creditor.

If the creditor assigns collection authority to a debt collector but retains ownership of the debt, the OC continues to report the debt balance owed to them.

The debt collector can also report their collection, and the balance reported by them indicates the amount that is under their collection, and does not represent debt owed to them.  It is htus not double-reporting of "debt."

 

If the OC sells the debt to a debt collector, they are required per CA reporting policy to promptly update the debt balance to $0.

The reporting of the debt collector continues to reflect the $$ that is under their collection, but also then becomes the amount that is owed to them.

Only one party is them reporting a non-zero amount.

 

If the debt collector then sells the debt to another, the new debt collector can then report their collection, with the amount referencing both the amount under their collection, and also owed to them.  While neither the FCRA nor the FDCPA require the prior debt collector to them delete their reporting, teh CRAs have established reporting policies that require them to do so.  That policy is intended to prevent confusion as to showing of two simultaneous collections on the same debt.

 

In summary, think of the amount reported by a creditor to always reflect debt, while an amount reported by t debt collector to reflect amount under their collection authority which may or may not also be owed to them.

Message 3 of 3
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