Three Derogatory Marks from same CA?

Discussion in 'Credit Talk' started by suedenym, Apr 25, 2014.

  1. suedenym

    suedenym New Member

    I pulled my credit report recently. I was uninsured for a long time and knew I had some medical bills that had been sent to collections. I currently have a total of 5 marks listed as "in collections." Three of them are from the same collection agency. I may have made a mistake here by contacting that collection agency online and initiating a discussion...but can't undo that now I suppose. I had been open to negotiating a settlement, but inquired about how they would report to the credit bureaus and asked why I have three marks on my report. Anyway, I was told that I have three unpaid charges for the same date of service at "XYZ Medical Group." The collection agency said they reported all three charges and that they would not change it to reflect one account with a combined total. I have since been in touch with "XYZ Medical Group" who emailed me saying that I have one "closed" account with three charges for the same date of service.

    Sorry this is so long...getting to the point...if I owe it, then I owe it. However, can the collection agency really break up each individual charge like that and report them separately? I would imagine that just one account in collections with them impacts my credit score differently than three! What to do?
     
  2. mindcrime

    mindcrime Well-Known Member

    You're correct, 3 collection accounts will hurt your reports more than 1, however its the initial negative account that does the most damage. A FICO score can drop 100+ points with just one negative account inserted.

    As far as taking care of your problem, follow these steps:

    Why Chat's Credit Confusion - HIPAA LETTER
     
  3. jam237

    jam237 Well-Known Member

    This is an example of a good time to demand validation.

    Yes, it is possible that you had 3 drs appointments or other services on the same day. But without proof, it could be a mistake of someone(s).

    The goal is to see what info they can provide.

    Second, are the accounts flagged MEDICAL under HIPPA, medical debts need to be properly flagged as such, and any medical info can not be displayed to 3rd party pullers. (An entry for John's Cancer Center reveals a potential DX of cancer, in violation of HIPPA.)
     
  4. suedenym

    suedenym New Member

    None of the accounts on my credit report are flagged as medical, as far as I can tell. I only have a report from Experian, but will get the others. Here's the info that I do have from the report:

    Americollect, Inc.
    Acct #: 183XXXX
    Acct Type: Collection Department/Agency
    Past Due: $56
    Date Opened: 12/1/2013
    Acct Status: Closed
    Payment Status: Seriously past due

    Americollect, Inc.
    Acct #: 183XXXX
    Acct. Type: Collection Department/Agency
    Past Due: $121
    Date Opened: 12/1/2013
    Acct Status: Closed
    Payment Status: Seriously past due

    Americollect, Inc.
    Acct #: 183XXXX
    Acct. Type: Collection Department/Agency
    Past Due: $121
    Date Opened: 12/1/2013
    Acct Status: Closed
    Payment Status: Seriously past due

    AR Resources, Inc.
    Acct #: 557XXXX
    Acct Type: Collection Department/Agency
    Past Due: $595
    Date Opened: 11/1/2013
    Acct Status: Closed
    Payment Status: Seriously past due

    FAC/NAB
    Acct #:1207XXXX
    Acct Type: Collection Department/Agency
    Past Due: $350
    Date Opened: 1/1/2009
    Acct Status: Closed
    Payment Status: Seriously past due

    Merchants Assoc Cool D
    Acct #:702XXXX
    Acct Type: Collection Department/Agency
    Past Due: $1.834
    Date Opened: 9/1/2008
    Acct Status: Closed
    Payment Status: Seriously Past due

    Should I send letters for validation to all of the agencies? I need to take out a student loan asap, but I can't qualify with my current credit score. I only have one credit card with a $1000 limit, and no cosigner for a loan. I don't qualify for a federal loan at this time, so I need to take out a private loan for the next two semesters. All help and advice is appreciated!
     
  5. jam237

    jam237 Well-Known Member

    Is that from the actual CRA (or a tri-merge) report?

    If it was me, I would demand validation.

    Do they list an Original Creditor of any type on it?

    There are two that I would really challenge with the identical account numbers and identical amounts, yes, you could have two visits both totaling the exact uneven number, but it's a red-flag that it could be a duplicate billing. :) Enough for you to be able to demand that they prove that it isn't. :)

    On the CRA online report, if you look at the detail page, it should include medical somewhere as a notation if it's properly notated as a medical debt.

    If they aren't showing as medical on the actual CRA report, then I would go after them in the following multi-pronged dispute process. :)

    1. Demand validation (make them prove that it is a medical debt)

    2. Immediately after they receive the validation, dispute it with the CRAs for something that looks like it may not be correct (for instance the duplicate $121s, incorrect dates, medical debt not notated as a medical debt, etc.)

    Look over the entries with a fine tooth comb (even to oversimplify, did you dispute the account in any way, and is the notation of dispute on the entry, even if you only call to question, or dispute it in any way, they are required to notate the dispute on the credit file.) :)

    3. When you get the CRA dispute results, if they verified the accounts, again, make sure that there are no errors, if there are, make note of the errors, redispute, and say to yourself, "KACHING! Thank you DSDA Collections for $1,000.00!" (and multiply that $1,000 by every tradeline. BAZINGA!) (It'd also be a FDCPA violation for $1,000.00 for furnishing false credit information! KAZAAM; and another violation of the FDCPA if they didn't provide you with the validation that they obtained and mailed before they responded to the CRAs.)

    4. When the CRA says that they refuse to dispute because they've previously verified the account, redispute, demanding that the data furnisher is unreliable and under Cushman v. TransUnion they are required to redispute if you question the data furnisher's reliability.

    Especially if the DF has now sent you the validation that it's a medical debt, and they've refused to flag it as such. :)

    5. Repeat 3-4 escalating the disputes every time. When you get another previously investigated, add in Johnson v. MBNA's need for the data furnisher to CONCLUSIVELY VERIFY the debt. :) Especially, if the medical notation is the error, because they've already verified that it is a medical debt through the validation.

    THEN you draft the suit of all the CRAs, CAs, and OCs, into one nice and neat suit. For all of the damages calculated in step 3 (FDCPA is only 1 - $1,000.00 per account, no matter how many violations occurred, but the number of violations can help to show that they systematically violate.)

    Tell them that you intend to file for violating the FDCPA, FCRA, and HIPPA. When the OCs and CAs see that they're being asked to give you upper 4 digits, for a $56-595 account; they become surprisingly willing to get rid of you. :) Give them 2 weeks, then go to Federal Court, you can ask to waive your court filing fees if you don't have the resources to file.

    File. See how quickly they respond when the U.S. Marshall's Service delivers the suit, and/or they receive a Certified Mail from the United States District Court.
     
  6. suedenym

    suedenym New Member

    Wow! That was incredibly helpful and informative. Thank you so much. This all seems a bit overwhelming, but it's helpful to have a plan of action. I will be sure to update!
     

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