Newbie in need: Got a letter from a CA for a medical bill that I'm disputing and need to know if I'm better off working with the CA or original creditor to keep this off my credit report. Backgroud: Signed a form promising to pay for a medical test if Medicare didn't, but only after I was assured the test would be covered. Unfortunately the bill got rejected. While I believe I was deceived, I offered to pay the Medicare rate, but they want the full rate (~$100). I was disputing the bill when I got a letter from the CA. Got scared so called up the OC and paid 20% of the bill. They said my collections would be on hold. Does that mean it won't be reported to the CRAs? Also, should I ignore the CA or let them know I'm working with the OC. My objective is to keep this off of my credit report. Lastly, I planned to file a complaint with Medicare, the BBB and my state AG's office. However, I'm worried if I do that they will put this on or refuse to take it off my credit report. Do OCs or CAs usually report this to the credit bureaus if the account has been paid in full? Suggestions on the best way to proceed would be greatly appreciated.
Go ahead and send a validation/dispute letter to the CA. This should buy some time while you work with the OC, and will stop them from putting it on your credit report.
If you were given an ABN (Advanced Benificiary Notice) to sign stating that you understand that you will be responsible for the test if Medicare doesn't pay - BUT at the same time they assured you it would be covered, I would definately fight it. I would send a letter to the office manager, detailing the circumstances and specifically naming who told you that Medicare would cover it. I wouldn't let this one go if I were you. It completely flies in the face of the function of an ABN.
Thanks jlynn and CaliGirl Caligirl - You are absolutely right. Like an idiot, I signed the ABN after the rep. told me it would be covered. I want to fight this, but it is more important I retain a high credit rating. I just checked my credit report and there were no collections (went to the CA 3 weeks ago). I'm afraid they will put this on my credit report if I fight them. What do you think? Is the OC obligated to tell me if they have reported this to the CRAs? I asked, but I was only told the collections would be put on hold.
Re: Medical collection, work w/CA o DISPUTE DISPUTE DISPUTE! Send a validation to the CA, this will PREVENT them from placing anything on your credit report. Adding a tradeline to your credit report is a collection activity which by law the CA can not do until they have validated. As long as you're working with the OC (even thou it's trying to get them to minimize or eliminate the charge) and they have the CA on "hold" they won't respond to the CA to give them the information that your validation letter has requested. Until the OC sends the CA the information for validation, they can not respond to you to validate it, therefor they can not place anything on your credit report. I agree with the above poster, sending something to the manager at the medical facility explaining the situation to try and come to an agreement. The least they should do is at least honor the pricing that they would give to Medicade since they assured you the testing would be covered. Perhaps make that suggestion in your letter. I doubt very much that they would be willing to zero balance your debt, they would be under no obligation to do so, and since you signed the agreement, you are legally responsible for the debt no matter what anyone told you. Try and be nice when contacting the medical facility. In the end you may end up just agreeing to pay 20-30% payments for 2-3 months or whatever you can afford to assure that it doesn't stay with the CA and won't appear on your credit report. ChrisB
Re: Medical collection, work w/CA o Thanks ChrisB, its good to know a CA can't file a negative report without getting the debt validated. Just to be sure that I understand you correctly, I should send the CA a simple validation letter - WITHOUT telling them I'm working with the OC. I assume if I mention I'm working with the OC, that will negate the need for a validation letter (ie, I admit the debt is valid)
Re: Re: Medical collection, work w/ Yes, send the CA a validation letter. This will require them to validate the debt before taking any collection actioins, one of which is placing it on your credit report. Make sure to send it CRRR so that if it is delivered to them, then the next day they put a ding on your credit report, you have them on a violation. Keep this as your proof of when they recieved your validation request. Then hopefully if you're trying to work with the OC to settle the account, they hopefully will consider collections on hold and won't send the information to the CA in order for the CA to validate.
Re: Re: Medical collection, work w/ Just called Quest Diagnostics (OC) and was told they do not report oustanding debt to CRAs (they did not sell mine to the CA, only assigned it). Sounds strange, so I was wondering if anyone can confirm this. Would like to start another post on this question, unless the vets tell me to keep it here. (did a search on Quest and came up empty) Since I paid 20% a couple of weeks ago (before I found creditnet), I asked for a receipt and was told it would come from the CA. Since it appears the OC is working with the CA, does it still make sense to send my validation letter? (Was already to mail it before I talked with the OC.) I'm still going to dispute part of the original bill with the OC.
