Medical Collection Removal & HIPAA ...Clarification

[Anonymous]

Currently cleaning up my credit and things were looking good.  Then I get notifications that my report has changed from 2 of the 3 bureaus. I have a $65 medical collection from NCO.  I have not recevied any written correspondence from them so I called. After the initial 5 minute argument (the rep was very rude) I advised I would gladly pay any debt that is valid and mine, however I did not know what it was for and received no notice from them.

The representative gave me the info verbally and I do recognize the medical facility, but thought my second insurance paid for the remaining balance. I asked her to send me the info in writting which she did not want to do.

I called the urgent care I went to and was advised I cannot pay them since they have already referred the account. If the debt is valid and I pay it, will it automatically come off my report per HIPAA or do I have to ask for a PFD? I am confused by all the different processes.  I am in the process of getting a HELOC and this collection dropped my score 42 pts.

Thanks in advance

[Anonymous]

No it will not drop automatically.  The HIPAA process must be followed from the beginning in order to get paid medical deleted!

Start the process and make payment using the OC letter. When making payment always use the restrictive endorsement!!!

payment is always made to the OC. Do not talk to the CA!

[Anonymous]

I used the online dispute process for both CRAs. Should I go back and send the pre-HIPAA medical dispute letter as well?  You mention I need to make payment using the OC letter. Is that the link called HIPAA Letter to the OC? If so, I am confused by what inserts I am to make.  Also, it reads like I have paid the debt and I have not. So i leave the wording the way it is and inclose a check with the restrictive endorsement? I have not opted out (Step One).  Is that imperative? Final quesion, can I just go to the urgent care and pay them (if they will take it) and then follow up with one of the letters? 

Thanks for your quick reply and sorry for all the questions.  I will comfirm I am truly confused.

[Anonymous]

You need to start the process form step #1.  You need a paper trail and not miss any step. When you get to the OC letter you would use insert (A) with payment using the restrictive endorsement!

All the inserts are listed after the OC letter.

The HIPAA can not be done online.

All CRA disputes should be handwritten

[Anonymous]

Ok so I need to start from the beginning.  Just to clarify ... can I just send a check to the Urgent Care or go pay them, then start the HIPAA process and still have the same affect?  I am just asking because I dont know.

Also, when you opt out as stated in steps 1 and 2, does this impact the opportunity for preapprovals?

Message Edited by PurpleHaze on 05-03-2009 05:54 PM

[Anonymous]

Just a bump to get an answer to the below.

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@Anonymous wrote:

Ok so I need to start from the beginning.  Just to clarify ... can I just send a check to the Urgent Care or go pay them, then start the HIPPA process and still have the same affect?  I am just asking because I dont know.

Also, when you opt out as stated in steps 1 and 2, does this impact the opportunity for preapprovals?

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[fused]

I'm a bit concerned by this thread. Purplehaze, when exactly are you planning to app for a HELOC?

[Anonymous]

I already applied and they pulled my credit reports on 4/17.  I have to send additional documents and I think it will be approved. However, when I talked to the underwriter, he stated it would be approved under different terms as long as my score didnt change (when pulled it was 625).  This leads me to believe they will pull again which I dont understand why.

I do not mean to concern you.  I am actually more concerned by the impact of the med collection versus the HELOC (although I really do need it).  I am not trying to do anything illegal. I just want to understand the process and make sure I am doing all I can.

[Anonymous]

Bump for response

[fused]

I'm not suggesting anything might not be kosher here. I just get concerned about fixing credit and having an app going on at the same time, almost like oil and water don't mix. Paying this collection will likely lower your score.