Unknown medical bills went in to collection for more than a year?

Question

Recently caught my attention when I was applying for personal loan. The loan lady said that I am not qualified, cos there is negative item reflecting on my credit report. It's medical collection. I had never received bills from the medical group. It was about treatment provided to me since 2004! Now the over due debts had turned over to the collection agency, and they also had never sent me a bill for it. When I called the original creditor, they cannot handle my debts anymore. When I call the collection people up, all they want is the full payment without providing me more details on the debt. I was mad cos they ruin my credit behind my back without me knowing at all. Can anyone suggest if it's a good first step to dispute it with credit bureau first. I think, at least the Bureau can force them to dig in to more legitimate info about this debt before I pay.

Answer 1

The other poster(s) are correct, the CRA's cannot force them to validate the debt to you.

You would have to request written validation from the collector yourself.

Generally original creditors do not have to give a full accounting when it is requested - except for medical providers. They MUST provide a complete accounting when it is requested.
You should request it in writing.

If you use the HIPAA laws, you have a legal right to pay the medical provider, bypassing the collection agency.
In using HIPAA, you would have to pay the "full" amount to the medical provider.
The medical provider legally would have to recall the account from the collector and make sure the collector removes anything about you from their files and your credit report.

If you want to try to make a deal with the collector to pay less than you actually owe as payment in full, you could try that. But you would be waiving your HIPAA rights.

You might click on my profile and click on the last link I have listed.
Do some reading in the Medical Forum. (It's a totally free site)
You can learn how to deal with the collector or how to use HIPAA.

Answer 2

Echo is my expert on medical billing...good advice.

The others...well........

Lets just answer your questions. Can you force them to dig more info up and send it to you? Of course! ALWAYS dispute any negative item on your credit reports, and ALWAYS demand that the creditor validate the debt by supplying you proof. That means contracts, bills, receipts, and everything used to calculate what they claim you owe.

Why?

1) Collection agents are very good at "padding" the bill with frivolous (and illegal) collection charges and fees.
2) Do they even have the legal right to collect it? Have you seen an agreement between them and the original creditor? Or is all you have the collection demand letter? If I send you a letter, would you send me the money?
3) Are they reporting the correct delinquency date on your credit report?

If this is a legitimate debt, and these are the legitimate collectors, they will have the proof and will be happy to send it to you. It's your RIGHT to request this. Sorry if it puts more work on their shoulders, but that is their job. Don't let them push you around.

See the info below, and use my sample validation letter.

If you decide to pay this debt, check out the rest of the creditinfocenter link I sent, as it has great info on debt negotiations.

This is not spam...I have nothing to do with these sites. I just pass along good information.

Answer 3

The credit agency simply reports information they receive from the collection agency. They have nothing to do with the actual debt and will not contact the collection agency for you.

Tell the collection agency to send you written proof that the debt is yours. They should send you the details of the debt.

If it's a legitimate debt, there is nothing to dispute with the credit reporting agency. It will remain on your credit report.

Once you receive the information from the collection agency, and if it's a legitimate debt, you can attempt to work out a payment plan with them. If they will not do that, you may have to take out a personal loan to get it paid off.

You do not need to ignore it. If you do not pay, the collection agency may choose to sue you for the debt. If they win, the court could possibly order that your wages be garnished.

Good luck.

Answer 4

Beware there are Collection agencies that buy up bad debt for pennies on the dollar and then try to collect the whole amount from you. That is what it sounds like is happening to you. If you pay them even one penny of the debt it becomes a new debt and then they have the law on their side to enforce collection. They will try to trick you into making a partial payment. So don't deal with them. So don't pay them anything it will make everything worse. The original party has already written off your debt so they don't care if you pay or not. They are not getting the money. It will not improve your credit if you pay them. There was a documentary on TV about these sleazy collection agencies so be sure you know who you are dealing with.

Answer 5

Did your medical provider have your correct address? If you moved did you file a forwarding address with the post office? A medical provider would not be responsible for tracking you down.

If the unpaid bills have to do with insurance, you may want to also contact your insurance company. Even if the insurance owes the money, paying for services received is still your responsiblity. If you want the negative mark off your credit history the fastest way possible, pay the bill, then contact the credit reporting agencies to see about resolving the issue.

Answer 6

You seem to know the debt is legit. Just pay it.

Answer 7

just pay if like you should have in 2004 and quit bitohing.