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Medical collections...Can they be taken off?


tonantzin11
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Hello, I am helping my boyfriend clean his credit report. He only has 1 CO but it is a medical CO. It is for 1000.00 and the last time he made a payment was in May of 2004. Progressive management systems is now in charge of this debt. I want to know how to proceed with this, do we DV them, pay the CA or just wait it out? When i did my credit repair it was for CC's and I was past the SOL. This situation is very new to me. Any help would be greatly appreciated.

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Your boyfriend needs to go through the debt validation process (any time you try to take a short-cut you'll almost always end up wishing you hadn't).

That means he DVs the CA who is collecting/reporting.

Once he is satisfied that the CA has the legal authority to collect and of the amount owed then he can negotiate a reasonable settlement and can try to get a PFD.

Bear in mind, however, that neither a CA or an OC has an obligation to delete the tradeline unless it's inaccurate...they may not budge on this...whether they delete or not will depend on many factors but mostly on how badly they want his money!

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I would check your Medical Privacy laws. I believe that they can not report medical debt in Cal because of disclosure laws. I know they can't in Florida and believe it is the same there.

CA and FL certainly do some strange things when it comes to consumer rights but I find it difficult to believe that they can't report the existance of a debt simply because it is medical...not releasing personal medical information is understandable but I fail to see how the existance of a debt arising from a medical provider is any more "personal" than a CC debt??? Nevertheless, you may be right!

I'd sure be interested in hearing more about it if anyone can provide a complete explanation.

One more thing; I would submit that whether the debt can be reported to the bureaus or not does not impact the existance of the debt or keep the OC/CA from collecting (including court action)...I would still take steps to get this paid/settled.

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I would check your Medical Privacy laws. I believe that they can not report medical debt in Cal because of disclosure laws. I know they can't in Florida and believe it is the same there.

Medical debt can be reported in Cal, but nothing specific about the medical condition can be reported without the patient's consent. CA's can receive medical files from the care provider if the patient signed a waiver before treatment (almost always happens).

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I do not have the Cal laws, but in Florida the billing information is part of your medical records. The OC can provide this info to the CA under a business agreement, and the permission you sign when treated. But the CA becomes the HOLDER of MEDICAL INFORMATION at that point and can not disclose the information ie: billing records to any other party without obtaining your written permission to do so.

The paper you signed upon treatment is not transferible to the CA. Try searching for post by Enigma or looking on Creditboards.com the info is posted there I know.

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Thank you all for your responses my boyfriend intends to pay this debt but the amount owed is inaacurate. Originally his bill was 850.00, he payed about $300 in payments and when we checked his CR it said he owed 1000.00. He has no reciepts and he payed in cash. We will DV and see what happens.

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I have a lot of medical collections from 2000 when I lived in Colorado. I have lived in NY for 5 years now. I see that a post showed it is illegal to report medical debt in CA or FL. Do you know if that is true for NY or CO?

I have noticed that the CRA's now say that they only show medical collections by beginning them with "M" for the acct # or blocking the name of the CA or OC if it contains medical data. Is that all that they need to do?

I have heard a lot of people say that lenders usually overlook medical bills, but they affect my score, which in turn afffects credit decisions. Sorry for all the questions.

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