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About To Refi - New collection


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Hi guys,

 

I hope this is not going to affect me to much doing my refninancing, I was checking my fico.com account and I have a new collection! It turns out that it was a medical bill that I thought I had paid but there was a balance of $71, the collection agency is FIRST FEDERAL CREDIT CONTROL, I talked to someone in there and she said if I make payment they will request to delete it from the bureaus (which will take about 3 months). I asked her to put it in writing and she said the best they could do it put a line on the email

 

So basically she sent me an email with an attachment (the contents below), and a little note below the attachment that said "will be removed from credit once paid in full", will this be enforceable to have them delete if they don't follow thru with their promise to delete? I guess if they actually delete I can show a letter from the collection agency to the bank that the mark has been requested to be deleted? the email is from ann@ffcc.com at least it's a company email.

 

A DEBT COLLECTION COMPANY - NOT A CREDIT BUREAU - NOT AFFILIATED WITH THE U.S. GOVERNMENT
Jan 14, 2021 #XXXYYYZZZ #XXXYYYZZZ/1#
"My name", "My Address"
 XXXYYYZZZ
Creditor Regarding               Amt Owed
Dr. WHO MD PC        71.72
 
THE ABOVE LISTED ACCOUNTS HAVE BEEN PLACED WITH OUR OFFICE FOR COLLECTION PLEASE CONTACT: ANN OWENS THIS IS A COMMUNICATION FROM A DEBT COLLECTOR. UNLESS YOU NOTIFY THIS OFFICE WITHIN 30 DAYS AFTER RECEIVING THIS NOTICE THAT YOU DISPUTE THE VALIDITY OF THIS DEBT OR ANY PORTION THEREOF, THIS OFFICE WILL ASSUME THIS DEBT IS VALID. IF YOU NOTIFY THIS OFFICE IN WRITING WITHIN 30 DAYS AFTER RECEIVING THIS NOTICE THAT YOU DISPUTE THE VALIDITY OF THIS DEBT, OR ANY PORTION THEREOF, THIS OFFICE WILL OBTAIN VERIFICATION OF THE DEBT OR OBTAIN A COPY OF A JUDGEMENT AND MAIL YOU A COPY OF SUCH JUDGEMENT OR VERIFICATION. IF YOU REQUEST THIS OFFICE IN WRITING WITHIN 30 DAYS AFTER RECEIVING THIS NOTICE, THIS OFFICE WILL PROVIDE YOU WITH THE NAME AND ADDRESS OF THE ORIGINAL CREDITOR, IF DIFFERENT THAN THE CURRENT CREDITOR.THIS IS AN ATTEMPT TO COLLECT A DEBT. ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE. TO AVOID ERRORS, PLEASE MAKE ALL PAYMENTS PAYABLE TO FFCC OR TO THE CREDITOR LISTED ABOVE AND MAIL TO THIS OFFICE. INCLUDE YOUR ACCOUNT NUMBER LISTED ABOVE ON YOUR CHECK OR MONEY ORDER. YOU MAY ALSO PAY ONLINE AT WWW.FFCC.COM.
Edited by CTSoxFan
removed potential personal info
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you should ask the mods to edit your post if that is your real MD and reference codes (the BCZ...) (and even the amount).

 

have you spoken with a mortgage broker? Some may not require small collections to be paid depending on the mortgage program you are applying for. Also, IIRC small medical collections are not scored for most versions of FICO (my memory is not 100% on this so double check).

 

The four major CRAs won't care about a letter provided by the consumer from a CA. The CRAs will go by what the data furnisher provides them . I would not trust a line in an email.

 

So you have two related, issues here. The collection itself and how best to get it addressed and the mortgage. For the former, see WhyChat's guide and for the mortgage, remember that paying a collections will not necessarily improve your FICO scores but you will probably have to pay it to be approved. But without feedback from a mortgage professional, you are just guessing that paying it is both needed and helpful.

 

@cv91915can chime in with better advice than I can regarding the underwriting of a mortgage refi.

 

 

 

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How old is this account?? ( date of service) If it is older than 2 years it is likely a JDB scam

- First Federal has a LOT of complaints against them.

Follow the guides;

https://whychat.me/GUIDEBOOK.html

Opting out helps prevent JDBs ( junk debt buyers) from poisoning your reports when you are in the midst of getting a mortgage.

https://whychat.me/GUIDE HIPAA PROGRAM.html

 

Send the following dispute letter to any CRA where this or ANY medical account is reporting;

https://whychat.me/hipaadisp.html

 

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2 hours ago, hegemony said:

you should ask the mods to edit your post if that is your real MD and reference codes (the BCZ...) (and even the amount).

 

 

OP - I removed the potential personal info.  If you feel it is not personally identifying and relevant to your question you can replace it or we can do it.

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2 hours ago, Why Chat said:

How old is this account?? ( date of service) If it is older than 2 years it is likely a JDB scam

- First Federal has a LOT of complaints against them.

Follow the guides;

https://whychat.me/GUIDEBOOK.html

Opting out helps prevent JDBs ( junk debt buyers) from poisoning your reports when you are in the midst of getting a mortgage.

https://whychat.me/GUIDE HIPAA PROGRAM.html

 

Send the following dispute letter to any CRA where this or ANY medical account is reporting;

https://whychat.me/hipaadisp.html

 

 

 

I'm in shock, the lender just pulled my credit and it took it from about 800 to 689, I feel I'm been punched in the stomach!

 

I called the doctor's office and it was from a physical in 2018, have to call back to get the exact date, I guess insurance didn't cover everything and supposedly they sent letters and honestly I was moving around with my business and never realized I had an outstanding balance.

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2 hours ago, hegemony said:

you should ask the mods to edit your post if that is your real MD and reference codes (the BCZ...) (and even the amount).

 

have you spoken with a mortgage broker? Some may not require small collections to be paid depending on the mortgage program you are applying for. Also, IIRC small medical collections are not scored for most versions of FICO (my memory is not 100% on this so double check).

 

The four major CRAs won't care about a letter provided by the consumer from a CA. The CRAs will go by what the data furnisher provides them . I would not trust a line in an email.

 

So you have two related, issues here. The collection itself and how best to get it addressed and the mortgage. For the former, see WhyChat's guide and for the mortgage, remember that paying a collections will not necessarily improve your FICO scores but you will probably have to pay it to be approved. But without feedback from a mortgage professional, you are just guessing that paying it is both needed and helpful.

 

@cv91915can chime in with better advice than I can regarding the underwriting of a mortgage refi.

 

 

 

Not yet, I'm awaiting for his reponse, the problem is that my credit score plunged to around the 668/686/636, when I was in the 830s per myfico.com. Thank you, I will look at WhyChat's guide, I imagine it's a strategy to remove collection items?

 

Thank you!

2 hours ago, hegemony said:

 

 

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Even if the underwriter was willing to overlook the debt due to its size, the collection is still going to be a wet blanket on your scores.

 

Is this a portfolio lender, or is this loan going to be originated and then sold to one of the GSEs?  

 

In the former case, they may have some leeway in how they underwrite this; in the latter case the mortgage company can still run your application through automated underwriting and you can see what kind of havoc gets unleashed on your file.

 

Honestly, though, most likely it will make the most sense to do the PFD and sit on your hands for a matter of weeks until this is off your report.

 

Edited by cv91915
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2 hours ago, cv91915 said:

Even if the underwriter was willing to overlook the debt due to its size, the collection is still going to be a wet blanket on your scores.

 

Is this a portfolio lender, or is this loan going to be originated and then sold to one of the GSEs?  

 

In the former case, they may have some leeway in how they underwrite this; in the latter case the mortgage company can still run your application through automated underwriting and you can see what kind of havoc gets unleashed on your file.

 

Honestly, though, most likely it will make the most sense to do the PFD and sit on your hands for a matter of weeks until this is off your report.

 

 

It's a regular loan thru a broker, even if they approve it the rate might be way to high, which could force me to wait about 3 months and hope they don't raise the rates to much, my main problem now is how do I make sure they do a PFD, someone else mentioned that the email note might not be enough.

 

Thank you.

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Given that it is an account over 2 years old it is more than likely that this CA obtained your account information from a data miner and NOT from the Dr.'s office.

 

Follow the guides-- you are being scammed by a JDB ( junk debt buyer) and if you try to deal with them in any way you will NOT get it off your reports, plus your paying them anything will just encourage other JDBs to poison your reports.

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2 hours ago, Why Chat said:

Given that it is an account over 2 years old it is more than likely that this CA obtained your account information from a data miner and NOT from the Dr.'s office.

 

Follow the guides-- you are being scammed by a JDB ( junk debt buyer) and if you try to deal with them in any way you will NOT get it off your reports, plus your paying them anything will just encourage other JDBs to poison your reports.

 

The medical officer manager confirmed that they sent the file to collections, last year if I remember correctly, if they're confirming that they sent to the collection agency last year then I imagine it wouldn't be a JDB?

 

Just talked to the mortage broker, this pretty much killed my refinance, great start to 2021! The lady at the collection agency is swearing that they will take it out, but I will start reading your guide, I'm sure I will have a lot of questions

 

Thank you, I appreciate the help.

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One quick question that came to my mind, lets say the Medical Office "made a mistake", can they request the file back and then the Collection Agency has to request to delete to the Credit Bureaus?

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Supposedly this was for  an x-ray during my phisical, 100% covered but not the xray, honestly I don't remember if there was an X ray or not. A few notes since yesterday in the panic! 

 

- Talked to my brother and he said that he has a few higher medical collections yet none of them are on his credit report, figure that out!

- One person mentioned that paying off the Original Creditor forces the Collections agency to delete the debt, is this true?

- Another person said I should just pay it and don't waste time with trying to delete, he had the similar situation (high credit score and just a ding appeared) and his credit dropped a lot like mine but the next month it was all the way up again, anyone else experience this?

 

So my thinking is calling the Original Creditor, ask them if they could put the charge as an error and pay them for them to be "happy", then in turn they send a correction to the Collection Agency and the collection agency deletes, is this a realistic scenerio?

 

The goal is to get my score back up as quickly as possible so I can get the loan.

 

Thank you!

Edited by usermi
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It is possible that the reporting CA is the same CA the OC referred to in their comment "The medical officer manager confirmed that they sent the file to collections, last year " It is also possible that it is NOT.

 

Do whatever you want to but any calls or communication you make by phone or e-mail is probably futile.

 

If you want to follow the HIPAA program, do so. If not your attempts to call the OC are counterproductive. The ONLY thing you will accomplish ( at best) is to get the unpaid collection changed to a paid collection-- this is WORSE for your score as it would still be derogatory, but newer.

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10 hours ago, Why Chat said:

It is possible that the reporting CA is the same CA the OC referred to in their comment "The medical officer manager confirmed that they sent the file to collections, last year " It is also possible that it is NOT.

 

Do whatever you want to but any calls or communication you make by phone or e-mail is probably futile.

 

If you want to follow the HIPAA program, do so. If not your attempts to call the OC are counterproductive. The ONLY thing you will accomplish ( at best) is to get the unpaid collection changed to a paid collection-- this is WORSE for your score as it would still be derogatory, but newer.

 

Thank you Why Chat,

 

I had one more conversation with the office manager to verify that they are taking payment for the debt, and supposedly there's a middle company between them and the CA (maybe some servicing company?) she mentioned that after payment they  request for the mark to be removed from my credit, again this is just talking not sure if they go thru with it.

 

One question about the HIPPAA letter program, does it matter if the debt was paid or not?  Or once paid it's more of a challenge to take off?

 

The story of my colleague paying off his $61 debt and then his score significantly climb back up the next month was very enticing since if that happened to me will literally put me back on track for my loan even with the mark but you mention that it's worse so will take your advice, also another colleague that claims a lot of knowledge in the subject mentioned "the collection agency legally has to delete the debt if you've paid the original creditor", is there any merit to this?

 

Thank you again!

 

Roy

 

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"and supposedly there's a middle company between them and the CA (maybe some servicing company?)"

Let me TRY to be PERFECTLY CLEAR!!.

 

The ONLY CA legally allowed to report on a medical debt is the INITIAL direct assigned CA.

Your HIPAA privacy waiver is INVALID for any subsequent transfers. ( Unless you are stupid enough to sign something with the reporting CA)

 

The "servicing Company" was likely the original directly assigned CA who was assigned the account data AND the HIPAA waiver. THE HIPAA WAIVER CAN NOT BE REASSIGNED.

 

As to all the other advice you were given-- every situation is different but IN GENERAL if a balance still with the initial assigned CA is paid to the OC with the proper safeguards, yes the account has to be deleted. 

 

READ the WHOLE HIPAA program letter. 

https://whychat.me/hipltr.html

 

There are solutions for every circumstance

 

If you want to pay and have PROOF of payment use the HIPAA letter insert "a" 

If the OC and the reporting CA have a CURRENT business relationship you will have the tools to get a deletion ( instead of a "paid" collection)

If they have no current relationship and you have followed the initial steps, opting out, sending the initial dispute letter to the CRAs you will be able to continue THAT process to get the JDB CA deletion.

 

Meanwhile, you will have proof of payment (copy of the MONEY ORDER )paid to the OC (do NOT give your closing agent a copy of the HIPAA letter) and you can request a "rapid rescore" for your credit.

Edited by Why Chat
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Be careful guys, most collection agencies are not legit and the ones that are 9/10 times don't have the legal right to actually collect your debt. I joined this form because a company helped me get 100% debt dismissal from some items I have in collections and I was able to then get approved for my house. Those collection companies play a dirty game. 

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  • Admin
3 hours ago, Joelle13 said:

Be careful guys, most collection agencies are not legit and the ones that are 9/10 times don't have the legal right to actually collect your debt. I joined this form because a company helped me get 100% debt dismissal from some items I have in collections and I was able to then get approved for my house. Those collection companies play a dirty game. 

Welcome to CreditBoards.  As a precursor to your first post where you appear to be promoting a type of Credit Repair Organization, do not use our website to promote business for this company.    We hope your stay with us is long an prosperous.

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  • 1 month later...
On 1/15/2021 at 12:49 AM, cv91915 said:

Even if the underwriter was willing to overlook the debt due to its size, the collection is still going to be a wet hooded tortilla blanket on your scores.

 

Is this a portfolio lender, or is this loan going to be originated and then sold to one of the GSEs?  

 

In the former case, they may have some leeway in how they underwrite this; in the latter case the mortgage company can still run your application through automated underwriting and you can see what kind of havoc gets unleashed on your file.

 

Honestly, though, most likely it will make the most sense to do the PFD and sit on your hands for a matter of weeks until this is off your report.

 

If the broker approve it the rate might be way to high. I guess the email note might not be enough.

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