How to handle medical collections on credit?

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davebo
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How to handle medical collections on credit?

Post by davebo » Tue Sep 12, 2017 10:24 am

I recently pulled my wife's credit and noticed 2 medical collections for around $150 and $110. They were both from the same date of service, one was from the hospital and the other from the doctor. I know we had never seen this or gotten any phone calls, so I called the hospital. It turned out that they were mailing the bills to an old address. They had updated our patient record, but not the billing record.

The collection agency said they just followed the hospitals direction on when to report to the bureau. They suggested that I just deal with the hospital and see if they can delete it from the credit bureau. I told them that I think the collections company would delete it and they said that it's not something they normally do.

Anyone have a situation like this and how did you resolve?

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Uncle Pennybags
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Re: How to handle medical collections on credit?

Post by Uncle Pennybags » Tue Sep 12, 2017 10:41 am

The newest version of the FICO credit score, the FICO 9, and the VantageScore 3.0 weigh medical bills in collections less than other unpaid accounts.
That said the best thing you can do is put a statement on your credit report that you never got the bill. As you are finding out you will be bounced around trying to get it removed.

SimonJester
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Re: How to handle medical collections on credit?

Post by SimonJester » Tue Sep 12, 2017 1:03 pm

I would call the hospital explain what happened and see if you can pay them in exchange for the deletion of the ding on your credit report.

If they will not deal with you anymore because they sold the debt to the collection agency, then call the collection agency and try for the same just make sure you get what ever you agree to in writing before you send the collection agency a money order. Do NOT give them electronic access to your bank account!
"They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety." - Benjamin Franklin

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midareff
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Re: How to handle medical collections on credit?

Post by midareff » Tue Sep 12, 2017 1:13 pm

I would call the hospital and DEMAND they remove the collection company from further action as the failure to update all their addresses is theirs. When they updated the patient record they, not you, failed to update your billing address. You might also want to request/demand an apology letter since they erroneously sent you to collections. Have them then send you a proper bill and pay it. I'd be very offended by their error.

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Uncle Pennybags
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Re: How to handle medical collections on credit?

Post by Uncle Pennybags » Tue Sep 12, 2017 1:53 pm

SimonJester wrote:
Tue Sep 12, 2017 1:03 pm
I would call the hospital explain what happened and see if you can pay them in exchange for the deletion of the ding on your credit report.
They sold the debt and wrote it off. It is now the owner of the debts decision.
I'm not a lawyer, I don't even play one on the Internet but that is how things happen.

SimonJester
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Re: How to handle medical collections on credit?

Post by SimonJester » Tue Sep 12, 2017 2:58 pm

Uncle Pennybags wrote:
Tue Sep 12, 2017 1:53 pm
SimonJester wrote:
Tue Sep 12, 2017 1:03 pm
I would call the hospital explain what happened and see if you can pay them in exchange for the deletion of the ding on your credit report.
They sold the debt and wrote it off. It is now the owner of the debts decision.
I'm not a lawyer, I don't even play one on the Internet but that is how things happen.
They may or may not be the case, the collector might just be another section of the hospital. Either way its best to verify that with the original debt holder vs the debt collector. Debt collectors are not known for their honest in verbal conversations.
"They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety." - Benjamin Franklin

davebo
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Re: How to handle medical collections on credit?

Post by davebo » Tue Sep 12, 2017 4:33 pm

It seems that if the collections agency reported the balance, they would need to take it off. When I spoke with the agency, they said they don't typically do that. She said I should deal with the hospital and see what they say about it, since this was their fault. I get the impression that they will do it if the hospital directs them to, but we'll see.

The billing at these hospitals is the worst.

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