Paid medical collection returned to Equifax report as "unpaid"

[bigmistake22]

Hello everyone,

Looking for guidance on how to proceed to clear up this issue as efficiently as possible.

In April 2022, I paid settled on a medical debt ($650 --> $455). We settled because the debt was old (Date of service: Sept 2016). In addition, I paid a smaller, more recent medical collection for $15. Total was ~$470. I paid 4/29/22.

In May, the collection fell off my account and my score shot up. 

Today, out of the blue, the collection is back. I saw it on CreditKarma and then confirmed by pulling my report from annualcreditreport.com.

It says "unpaid". Same DOS. Same collection agency. Same amount ($650). The only thing that that looks different is in the comments is says "GS". No clue what that means?

Obviously, my score dropped.

I have proof via email recieve of the $15 but I don't see the $455 receipt. I have a copy of the statement with a charge for $455 to the CA. Will that be enough?

 

I know I need to dispute but not sure if I should go directly to Equifax, where the collection appeared, or if I should wait until Monday and reach out to Credit Center Inc (CCI), the CA, who are closed this weekend.

Any suggestions? I'm so bummed. I know it will bounce back but we are in the process of figuring out a loan for the roof, etc. I don' t want to wait until October.

Thanks in advance!

 

[Bulldoger]

2 hours ago, bigmistake22 said:

I have a copy of the statement with a charge for $455 to the CA.

I would call when CCI is open Monday:

 Ask what is the Balance on your account. 

              If they say it's zero then ask why is back on your report showing $650. 

              Then ask how long it will take for them to update ask if they can do that that day. 

              Then ask for a settlement letter to be sent. 

              If they say it's $650 tell then you have copy of statement showing payment on ______ date.  Say you made another settlement on different account they should check if it was applied to wrong account. 

               It will be alot faster to clear up with collection company than with CBs. 

 

[bigmistake22]

Thanks, @Bulldoger! This is helpful...I wasn't sure which direction to go!

I will do everything you suggested. I checked CK this morning (I only use it for monitoring changes to the 2 CBs) and saw that my husband's account has TWO new collections. There's no way that is accurate so I was able to pull his report and see that CCI also added 2 paid collections to his report (total $170).  I know that we have it on the CC statement. Hopefully, that's all I will need. 

I will definitely ask that a settlement letter be sent for all of these. I know I had asked and I have 1 (for $15). I had tackled a bunch of small (and not-so-small) collections on 4/29 and I remember CCI telling me it may take some time for the receipt to come through but I would get it (electronically). I am going to search email again but I have a feeling that fell through the cracks. 

Thanks for the help! It was all medical bills, so hopefully this is just a glitch on their end. the $170 for my husband is paid but, even if it wasn't, it shouldn't be on the account!

Much appreciated!

[BackFromTheDebt]

Lesson #1 to all readers — save the important documents.  For example, I once beat one of the creditors most known for going the distance because I had saved a 5 year old letter which broke several banking and collection laws and destroyed their credibility. 
 

it is great that you saved the settlement letter. 
 

Lesson #2:
My advice, in concurrence with @Bulldoger is to try to work out the powers that be.  For example, my wife once worked out an agreement with a hospital.  When one check was one day late, and they had somehow missed the previous check, it went to collections.  She was able to fix the matter by calling the hospital’s collection office.  
 

Lesson #3 

The CFPB has a lot of power if you can’t work things out.  My defaults were before the CFPB. In the early years of the CFPB I didn’t know if they have any power.  
 

I now work in banking. I won’t say which bank or what my exact job is, but my job is to help make sure that when the bank makes a mistake (almost always a database error or a programming code error) the customer is properly compensated, which in credit reporting cases means fixing the credit report data.  I have spent the past few months helping fix credit reporting data with the CFPB breathing down out necks.  If that means dropping everything else and working evenings and weekends to keep the CFPB happy, that’s what I have done. But in the end I believe we did right by the customers and their credit reports will be fixed.  

[bigmistake22]

Thank you, backfromthedebt. I love the insight into the "behind the scenes". It's nice to know that some are working to fix errors because, as you know, waiting for the collection to leave the account is so stressful, especially since I know that (at least in this case), it's not my fault!

I contacted the CA regarding my bill ($650 - medical, settled for $455) and my husbands (two medical bills - $102 and $68 - total $170 paid in full). They confirmed all three of the collections are paid and should not be on the credit report. They tried to say "give it a few months to come off" and I pushed back to clarify that it did come off the report and now it showed up again (only on Equifax, TU and EX do not have them as of this AM). Once they understood, they said they are not sure why the CB is reporting it. They reported to CB that the accounts were paid and should be off the report and there has been no additional reporting on the account so, as far as they are concerned, case closed. I couldn't get them to re-report to the CB but I asked them to send receipts. They sent the $170 receipt but not the $650 so I'm calling back (again) today.

In the meantime, I contacted Equifax on the phone (for me) and online (for husband b/c they wouldn't speak to me without my husband's ok and he was working). I put in a dispute for both. The person on the phone pushed me back to the CA. I reiterated I already spoke with them and that they had already reported it paid. She reluctantly accepted a dispute. I asked her if I could send info and apparently the only way they would accept additional info was by mail. I have to send my license and info to an address in GA. They were not helpful, even when I told them that the $650 was a paid medical and should not be on the report.  Should I call them again?

My online dispute was easier although I wasn't able to upload the receipt (pdf, within the required size limit). I added comments too. When I processed them, they also did not go through. It just looks l ike a generic dispute with no details. Very frustrating. I'm don't know what else to do. 

They say this can take a month to complete - I think, maybe, I'll try the CA again to see if I can push them to inform the CB again. They were resistant but maybe if I explain the situation again I'll get someone a bit more sympathetic. 

What bugs me is that my husband's 2 collections, even if they weren't paid, shouldn't be on his report b/c they are under $500 medical. The CA didn't see to care and the CB wouldn't speak to me about it b/c he wasn't available. I'll just keep trying. Thanks for the assistance, everyone!

 

[bigmistake22]

Following up: 

Credit center keeps connecting me with the same guy when I call to get a receipt. He cuts me off and mansplains how to check my spam mail. He doesn't even wait to hear what my issue. It is extremely frustrating. They said b/c it's a settlement, the $455/650 collection receipt comes from a different location and told me they sent it 2x already. They have sent to 2 different emails...apparently. I received the other one for $170 b/c it was PIF. I'm calling for a 3rd time today.

How long to disputes take? I don't know what is taking so long. Equifax is difficult to get on the phone and when I get through they also were unhelpful.

Do you guys think that there's anything I can do to speed this along? Can I mention the CFPB yet? I know it takes time but this is messing us up b/c the score drop looks terrible and we are about to apply for financing/high credit limit. I'd understand if the score drop was valid but this is 1000% the CB's fault.

Thanks, everyone, in advance!

[BackFromTheDebt]

This can get very bad for everyone. 
 

Make sure you save everything.  Save all correspondence and notes on phone calls. 
 

If you have a paper trail in which you have disputed with both the credit reporting agency and the company falsely reporting, they can be liable for either $1000 or the actual damages, plus legal fees.  
 

Meaning, if you apply for a loan and are denied or given a worse interest rate, they are liable. 
 

I would suggest consulting a good consumer attorney right away since they are giving you the runaround.