What should I Do?

[Anonymous]

Hi I checked my Equifax report and show a collection from Consumer Adjustment Company for a loan in 2015.  It says the balance owed is $137.00 and it was reported in my file July 26th 2020.  I want to take care of it.   I heard if I pay a collection and they don't delete it then it will still impact my score even if it's paid off?  I want to pay  and ask for a PFD, should I risk the chance of them not deleting it and have it still on my report even if PIF?  

Also, it showed 2 medical bills from 2017 that reported on July 26th 2020. They're each only $50.00 not sure why it's there because I have insurance.  I read that medical bills are always deleted when they're PIF .  Has anyone heard this?   Some people say don't pay because it will not impact your score?  Why would they send $50 bucks to Collections?  If I had known about it I would've paid it back then.   Geez.

[FireMedic1]

Never heard of that CA. Call and ask if they will PFD. Report back if they do. No there is no gain from paying a collections off. But it will quit updating on a monthly basis and age off. Now onto the med bills. Go by the med office in person and ask to pay them in return they recall the debt. And/or call your insurance company and see why it wasnt paid for such a small amount.

[gdale6]

Medical collections are some of the easiest to get removed from your CRs, here are the steps that you should follow to address them:

1. Call the OC and see if insurance can be billed, (or-rebilled), collections ultimately paid by insurance get removed per new rules that came from CRAs settlement with 22 state AGs. 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, this process cannot be discussed in any forum of myFico.

[jesscastillo]

I just had this collection company pop-up on my Equifax report. Have you contacted this company in regards to a PFD?

[FireMedic1]

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@jesscastillo wrote:

I just had this collection company pop-up on my Equifax report. Have you contacted this company in regards to a PFD?

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Contact the OC and arrainge payment in exchange they recall the debt. Deal with the creditor before the CA. Any moves with a CA. They can update and thats a hit.

[RobertEG]

As for the question regarding removal of paid medical collections, that only applies if the debt was paid in full by medical insurance.  That policy resulted from a settlement agreement between the big-3 CRAs and the offices of the AG of several states, and has been incorporated into the CRA policy statement under the "National Consumer Assistance Plan."  

It does not apply to medical collections paid by the consumer.