How to avoid a charge off on my credit for 7 years?
Anonymous asked:
I have a medial bill that I have been paying on for the last several month. I called the hospital because I received a letter saying the bill was due in full within ten days. The statement was dated almost three weeks after it was received the bill so the ten days was long past. When I called the hospital I was told the bill had been sent to United Collection Bureau. Now that it has been sent to a collection agency how do I handle the situation without it showing on my credit report? If I pay it and it shows up on my credit report as paid will this hurt my credit report since its a medical bill?
Betty
I have a medial bill that I have been paying on for the last several month. I called the hospital because I received a letter saying the bill was due in full within ten days. The statement was dated almost three weeks after it was received the bill so the ten days was long past. When I called the hospital I was told the bill had been sent to United Collection Bureau. Now that it has been sent to a collection agency how do I handle the situation without it showing on my credit report? If I pay it and it shows up on my credit report as paid will this hurt my credit report since its a medical bill?
Betty
Robert
I’m really astounded that people are more worried about their own credit rating rather than paying their debts. Just pay the debt, if you can.
Jesus
Since it is a medical bill it will fall within the HIPAA Act. To avoid the debt being placed on your credit report then first send the debt collector a letter asking for verification of the debt. Then pay the medical provider directly. Here is a link where you can learn about the act.
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HIPAA – Public Law 104-191
The HIPAA act is about a persons privacy. Because of HIPAA, medical debts can be treated differently than general consumer debts like credit cards, personal loans, etc.
In summary if you paid the medical bills to the collection agency and not the original medical provider then HIPAA does not apply, if the medical bill was paid, in full, to the original medical provider, then it would apply.
Meaning if you had a medical debt that was sent to a collector, then you have the right according to the HIPAA Act ,to pay the medical provider, in full. If a person then pays the medical provider in full, the medical provider must follow HIPAA and state laws concerning the account.
If the person pays the collector, then they waive their HIPAA rights and it could remain on a persons reports.
Sara
First thing is that Health Insurance Portability and Accountability Act (HIPAA) has nothing to do with ones credit report and medical debts reported for collection! (see source)
Title I of HIPAA protects health insurance coverage for workers and their families when they change or lose their jobs
Title II of HIPAA defines numerous offenses relating to health care and sets civil and criminal penalties for them for violation of Title I
All of which has to deal with medical information being used between medical entities and there is no provision regarding reporting of debts owed to CRA’s
There is however what is called balanced billing which is only for those who have or had insurance at the time the medical serviced were performed. When doctors or hospitals think an insurer has reimbursed too little, state and federal laws generally bar the medical providers from pressuring patients to pay the difference. Instead, doctors and hospitals should be wrangling directly with insurers.
California, New Jersey and 45 other states ban in-network providers from billing insured patients beyond co-payments or co-insurance required by the plan. Similarly, federal law prohibits providers from billing Medicare patients for unpaid balances.
Appeal a denial of insurance. If your insurer denies a benefit, find out why it didn’t pay for it and appeal the decision if you think the company is wrong. (this is where HIPPA does come into affect). The denial letter should state a specific reason why you were turned down. If the internal appeals process doesn’t work, take your complaint to your state Office of Insurance Commissioner, which acts as a mediator between you and your insurer.
As to your credit report, a paid collection looks a lot better to a lender then one that has been charged off or a judgment has been entered (rare in medical debts) due to the balanced billing.
You should report this to your state attorney generals office and file a complaint with the FTC at the following and inform them you were making payments with the original creditor when they turned it over to a collection agency. You can also file a dispute with the CRA’s regarding any derogatory entries made if it is reported on your credit report.
You can read the full documentation of HIPPA at the source I have referenced.
Hope this helps answer your question.