Medical Bill in my Equifax Credit Report

[Anovice]

I wish I would have found this board before I took action!

 

I noticed when paying my Citi Visa, that my FICA score dropped from 793 in April to 681 in May. There was notation that my credit score was impacted by a “derogatory public record or collection filed”. I then obtained my Equifax Credit Report from AnnualCreditReport and see a “Collections” notice. I did not get my Experian or TransUnion credit reports, but I assume this notice is in those two as well.

 

In September 2021, I went to the dentist and had a replacement crown. I had a problem with the crown and the dentist did not stand behind his work as promised, which necessitated me to see another dentist at my expense. I continue to have a problem and now the only resolution is another replacement crown, also at my expense. Because the first dentist did not perform as promised, I held back the $356 which was the balance.

 

The dentist ended up turning the $356 over to a collection agency who in turn wrote me at the end of January. In early February, I wrote the collection agency a certified letter explaining the crown problem and that I do not owe $356 as I offset my costs for the new dentist, which exceed $356. May 26th, the collection agency reported this to Equifax. It is under the heading “Collections” and there is a notation “Consumer disputes this account information”. But in the end, my credit score dropped 112 points. I have not heard from the collection agency since their letter of late January.

 

I am at a loss now as to how to get this off my credit report(s). One option seems to sue the dentist in small claims court. The desired outcome would be the notice deleted from my credit report.  I read that starting in July 2022, consumers can expect to have paid medical debt erased from their credit reports. But the $356 is not paid. I also read that starting January 1, 2023, all unpaid medical debt less than $500 will not appear on credit reports. I assume that “dentistry” debt is medical debt. Is this the same as saying that all unpaid medical debt less than $500 will be removed from credit reports? If so, this may be my best option as I will not need to apply for credit before.

 

Your thoughts on how to best proceed to get this collection notice for $356 off my credit report are very much appreciated.

 

Thank you,

Anovice

[MarvBear]

Welcome to Creditboards!

We hope that you find what you're looking for here.

Some helpful tips:

• Your post may not get a reply right away. Don't be discouraged, this is a very busy board. If it falls off of the first page, feel free to reply to your post yourself, with the word *bump* in the text. This will *bump* your post back up to the top of the board.
• If you haven't yet, take a peek at out Newbies Section. Everything that you need to know is in that forum, for the most part. It's a lot of reading, we know, but this credit stuff can have a steep learning curve. In no time, you'll be posting like the pros!
• If you find that someone is discourteous to you, use the REPORT button at the top right of every post - that will ensure that a moderator or admin looks at the post and decides if it is against the TOS.
• Off -topic posts should go in the General Forum.

 

Again, welcome to the CreditBoards family!

 CB Admin:  Pam, MarvBear, radi8, LKH & 😇breeze😇

 

[CreditSucksNot]

2 hours ago, Anovice said:

I wish I would have found this board before I took action!

 

I noticed when paying my Citi Visa, that my FICA score dropped from 793 in April to 681 in May. There was notation that my credit score was impacted by a “derogatory public record or collection filed”. I then obtained my Equifax Credit Report from AnnualCreditReport and see a “Collections” notice. I did not get my Experian or TransUnion credit reports, but I assume this notice is in those two as well.

 

In September 2021, I went to the dentist and had a replacement crown. I had a problem with the crown and the dentist did not stand behind his work as promised, which necessitated me to see another dentist at my expense. I continue to have a problem and now the only resolution is another replacement crown, also at my expense. Because the first dentist did not perform as promised, I held back the $356 which was the balance.

 

The dentist ended up turning the $356 over to a collection agency who in turn wrote me at the end of January. In early February, I wrote the collection agency a certified letter explaining the crown problem and that I do not owe $356 as I offset my costs for the new dentist, which exceed $356. May 26th, the collection agency reported this to Equifax. It is under the heading “Collections” and there is a notation “Consumer disputes this account information”. But in the end, my credit score dropped 112 points. I have not heard from the collection agency since their letter of late January.

 

I am at a loss now as to how to get this off my credit report(s). One option seems to sue the dentist in small claims court. The desired outcome would be the notice deleted from my credit report.  I read that starting in July 2022, consumers can expect to have paid medical debt erased from their credit reports. But the $356 is not paid. I also read that starting January 1, 2023, all unpaid medical debt less than $500 will not appear on credit reports. I assume that “dentistry” debt is medical debt. Is this the same as saying that all unpaid medical debt less than $500 will be removed from credit reports? If so, this may be my best option as I will not need to apply for credit before.

 

Your thoughts on how to best proceed to get this collection notice for $356 off my credit report are very much appreciated.

 

Thank you,

Anovice

 

There is another option that you should know about should this happen again.  The State Dentistry Board.  They handle disputes about billing and shoddy work all the time.  The first issue is you arbitrarily decided to withhold payment.  Unfortunately the financial agreement you sign with any medical provider does not allow you to do that.  If you want to protect your credit you pay the bill then sue.  

 

I would file a compliant with the Dental Board.  Keep in mind you will need the records from the other 2 dentists stating the first job was not done to industry standard creating additional expense and therefore the balance should be waived to offset that.  

[Anovice]

Thanks for your post and the great suggestion on contacting the Dental Board.

 

Are you familiar with the changes to medical collections that Equifax, Experian, and TransUnion have announced? 

 

Equifax, Experian, and TransUnion Support U.S. Consumers With Changes to Medical Collection Debt Reporting :: Equifax Inc. (EFX)

 

If I am understanding this correctly, it seems that if I pay the $356 this year, the medical collection debt will be removed from my credit reports. Or, if I do not pay the $356, in 2023 it will be removed by Equifax, Experian, and TransUnion. Is this your understanding as well?

 

Thank you.

 

 

 

 

 

[Why Chat]

The new rules for reporting medical collections that are yet to go into effect will not be applied retroactively.

 

I suggest you pay the dentist directly the $356. and file a complaint against him with whatever State Board you find appropriate.

DO NOT pay the CA who is reporting as it will then be reported as a paid collection and may not get removed. Even if it IS removed from your "big 3"credit reports it will still show up on other types of credit reports.

 

Follow the guides;

https://whychat.me/GUIDEBOOK.html

You do not have to delete old addresses

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

 

In your case, once you have opted out (to help prevent data miners obtaining your credit information and selling it to JDBs = junk debt buyers) and made sure there are no errors or misinformation on your reports, you can pay the dentist with this letter.

https://whychat.me/hipltr.html

use insert "A"

This will prevent your account from being reported as a paid collection

 

[Anovice]

On 6/14/2022 at 9:00 AM, Why Chat said:

The new rules for reporting medical collections that are yet to go into effect will not be applied retroactively.

 

I suggest you pay the dentist directly the $356. and file a complaint against him with whatever State Board you find appropriate.

DO NOT pay the CA who is reporting as it will then be reported as a paid collection and may not get removed. Even if it IS removed from your "big 3"credit reports it will still show up on other types of credit reports.

 

Follow the guides;

https://whychat.me/GUIDEBOOK.html

You do not have to delete old addresses

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

 

In your case, once you have opted out (to help prevent data miners obtaining your credit information and selling it to JDBs = junk debt buyers) and made sure there are no errors or misinformation on your reports, you can pay the dentist with this letter.

https://whychat.me/hipltr.html

use insert "A"

This will prevent your account from being reported as a paid collection

 

 

Thank you for your post!

 

Earlier in the year, I called 888-567-8688 and opted out. I understand that this is good for 5-years.

 

I obtained my "big 3" credit reports through AnnualCreditReport.com. The only other "issue" is under "Personal Information" One credit agency is showing a "Former" address as my "Current" address. I do not assume that this is a big deal now as I am not applying for any loans.

 

I understand your point about not paying the credit agency "as it will then be reported as a paid collection and may not get removed." However, do I have any assurances that paying the dentist directly that it will not be reported as a paid collection? My guess is that the dentist will not do anything. How can I be assured that this will be removed from my big 3 credit reports?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Why Chat]

If you pay with the letter I suggested 

" you can pay the dentist with this letter.

https://whychat.me/hipltr.html

use insert "A"

This will prevent your account from being reported as a paid collection"

They are precluded from reporting it as a paid collection

[Anovice]

4 hours ago, Why Chat said:

If you pay with the letter I suggested 

" you can pay the dentist with this letter.

https://whychat.me/hipltr.html

use insert "A"

This will prevent your account from being reported as a paid collection"

They are precluded from reporting it as a paid collection

Thank you for the form letter to pay the dentist!

 

I understand that this letter will prevent my account from being reported as a paid collection. However, I remain at a loss as to how this letter will get the collections notice removed from my credit reports. And, if the collection notice is not removed from my credit reports, how will this help my credit score?

 

Thank you.

[Why Chat]

The letter instructs the OC to remove the account from the CA and to have it deleted. If they fail to do that they can and should be reported to the authorities.

A dispute letter to the CRAs will also work if the account is not deleted.

[Anovice]

Thank you.

 

Here is something very interesting!

 

Yesterday, I was in contact with an old friend who is employed by Bankrate.com. I explained my situation and she sent me this Podcast and transcript From March 21, 2022, from The Wall Street Journal. 

 

Medical Debt Will No Longer Appear on Many Americans' Credit Reports - Your Money Briefing - WSJ Podcasts

 

They are saying that the new rules which are set to go into effect July 1, 2022, will be applied retroactively and that unpaid medical debt under $500 will be removed from credit reports in the first half of 2023.

 

What are your thoughts?

 

 

[Why Chat]

I will believe it when I see it.

 

Likely all that will occur is that reporting CAs will tack on interest and fees to get their collection accounts over the $500.

[Anovice]

An update.

 

When I checked my credit reports with the big 3 last month, on each, the "Date of First Delinquency" for the $356 was October 11, 2021. The "Date Assigned" to the collection agency was January 25, 2022.

 

I checked Equifax, Experian, and TransUnion this morning and the "Collections" notice has been removed from all 3. I have not paid this $356. The only reason that it could have been removed, was in accordance with the "new rules" starting July 1, 2022, specifically, the time period before unpaid medical debts in collections will appear on a credit report increased from 6 months to 1 year.

 

My guess is that it will re-appear on my credit reports on October 11, 2022, if the new rule uses the "Date of First Delinquency". Then, it will come back off in 2023 when the big 3 drop medical collection debt under $500 for credit reports regardless of if it was paid. If they use the "Date Assigned", possibly it will not come back on my credit report, but if does, it will come back off.

 

Being that the collections notice no longer appears on my credit reports with Equifax, Experian, or TransUntion, is there anything more that I need/can do other than monitor the situation?

 

Thank you.

 

Anovice