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Medical Collections

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Medical Collections

I have been doing a lot of research on clearing up medical bill collections. Is it true that once you pay off a medical collection bill that it should drop off your credit report? I have a read a couple of articles that say that it should but I am not sure how reliable they are.

Message 1 of 7
6 REPLIES 6
Moderator

Re: Medical Collections


@duchess76 wrote:

I have been doing a lot of research on clearing up medical bill collections. Is it true that once you pay off a medical collection bill that it should drop off your credit report? I have a read a couple of articles that say that it should but I am not sure how reliable they are.


Nope, they don't drop off. They just report as paid and that does not to help raise your score.  In the future models of FICO small paid medical collections won't hurt your score but for now they do

Message 2 of 7
Frequent Contributor

Re: Medical Collections

+1 

 

The definitely don't automatically drop off and they do negitively impact your score.

Starting Score: 573 (EX Faco) | Current Scores: EX(Fico) 674, EQ(Fico) 668, TU(Fico) 691
Message 3 of 7
Valued Member

Re: Medical Collections

Have you seen the latest news about the NY Attorneys General getting the big 3 CRA to remove paid medical collections? If not just google it -- It just happened Monday. Not sure if this is just for medical debt that was later paid by insurance or all payments on medical debt.

 

 Also, medical debt in the future will have a 180 day waiting period to allow for insurance to pay claims and consumers to pay the debt.

Message 4 of 7
Frequent Contributor

Re: Medical Collections

I have heard of many successful removals of PAID medical collections by way of disputes citing "HIPPA violations".

 

I don't know the details, but I suggest Googling the above for more info.

 

K

 

 


You can't have your cake and eat it too. But you can dip your finger in the bowl and lick the icing!
Message 5 of 7
Frequent Contributor

Re: Medical Collections

I found an old post from these forums with a lot of info:

 

http://ficoforums.myfico.com/t5/forums/forumtopicprintpage/board-id/rebuildingcredit/message-id/5336...

 


You can't have your cake and eat it too. But you can dip your finger in the bowl and lick the icing!
Message 6 of 7
Frequent Contributor

Re: Medical Collections


@duchess76 wrote:

I have been doing a lot of research on clearing up medical bill collections. Is it true that once you pay off a medical collection bill that it should drop off your credit report? I have a read a couple of articles that say that it should but I am not sure how reliable they are.


No it is not true that the paid med collection will simply drop off.  I used a strategy called PFD(Paid For Delete).  This is where you negotiated the payment of the debt for removal from your credit report.  Go to the Rebuilding Credit forum and search PFD.  Also, as mentioned, in the Fico 9 model, paid collections will lose their negative effects on your credit.  

 

As for the recent New York agreement with the 3 major credit bureaus, I read the article and took from it that this dealt with collections that were paid by the insurer?  I could be wrong?


Starting Scores FICO 08 EQ 604 EX 612 TU 614 (12/22/2014)
Current Scores FICO 08 EQ 748 EX 737 TU 7480 (06/20/2015)


Message 7 of 7
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