@Anonymous wrote:
I originally started this discussion in a different thread and it was suggested I bring it here for the specific details.
I don't understand how these wouldn't be two separate conversations; 1) the validaty of how much is owed and 2) the appearance of the CA on my credit report.
As you mentioned, and as I've been told, because they are my dependents and used my insurance I "may" be liable for the cost of the health care, and that because they used my insurance this is why it ended up on my credit report.
Paying the fees is one question, but why am I being penalized on my credit when I was unaware of the transaction, didn't authorize the transaction, didn't sign anything and was never notified about the transaction?
Further more, this was a medical bill that was covered under my insurance and validated that my insurance did in fact pay for the visit.
I don't know what these fees are for and within the realm of my responsibility for covering the dependents with insurance they were. I've also been told that just because it was my insurance that was used does NOT mean I'm liable for the mark on my credit report.
I've started by disputing the claims with the bureaus and sending a DV letter to the CA. I guess we'll see what happens from here.
Whether or not they used or attempted to use your insurance is generally irrelevant. A creditor can go after the parents for a child's medical care absent a court order. In many states -- and not only those that are community property states -- a spouse is liable for medical expenses of the other spouse. Since you state that you were legally separated, there is doubt that you would be liable for your wife's medical expenses, but the issue can be complex and depands on many variables not the least of which is how you define legal separation.
The validity of how much is owed is an issue between you and the OC / CA. Just because you disagree with the amount does not mean the tradeline has to reflect your version, much less be removed from your credit report. You can certainly DV the CA, but unless you do so within 30 days of initial contact the CA can ignore it. If you have never been directly notified by the CA, you can make a timely DV within 30 days or your discovery of their tradeline on your credit report.
The standards for a proper DV response by the CA are minimal. They simply have to regurgitate the identity of the original creditor, the original amount due with a breakdown of additional fees / charges and, if applicable, a copy of the judgment. With the exception of a copy of the judgment, everything else can be furnished in a letter on the CA's own letterhead. Now, if your insurance company paid the medical charges in full, then you can show evidence of this to the CA and likely get the tradeline removed as erroneous. Or you can convince the OC that they made a mistake and have them recall the debt from the CA while removing their tradeline. However, if you cannot enlist the aid of the OC or the CA does not agree with you, then you are pretty much stuck.
Unfortunately, in most states, whether or not you authorized or were aware or even notified of the debt is irrelevant. Although I can understand your position, a medical care provider has absolutely no duty to ensure that both parents are notified before medical care is provided much less seek their authorization. It is sufficient that one parent or guardian is aware and there are times when even that is not required. Yes, they should have sent you a bill or other notice, but that is not a legal requirement. The fact is that one parent was aware and chose not to communicate this to the other. As usually happens in domestic issues -- and quite unfortunate at that -- your beef is with your spouse and not the medical care provider.
I don't think the reason it did appear on your credit report is because they used your insurance, but not in the way you might think. Whether or not they used your insurance, you were likely still liable at least for the medical care of the child and it could have still eventually found its way onto your credit reports. I think that by using your insurance it may have made it easier for the creditors to discover who you were and to go after you.
Hopefully the CRAs will remove the tradeline, but they do not have to. If you can get the OC to agree that the entire balance had been payed, then that should be enough to get the CA to disappear.
I would be concerned about this happening again in the future. Although it is virtually impossible to prevent 100%, there are steps you can take through Family Court to lessen the possibility.
