medical bills question

[AJK]

I figured that if there was any truth to this (which apparently there isn't) it would be that medical bills are something that usually occurs without any negligence or lack of responsibility and can be too large for even a responsible person holding down a good job to pay off.

Let me put the issue to rest: http://money.msn.com/health-and-life-insurance/4-costly-medical-bill-myths-credit.aspx

Myth No. 3: Medical collection accounts are treated differently than other types of collection accounts when credit scores are calculated.

The truth: Medical providers, such as doctors and hospitals, don't typically report medical bills. In fact, these bills generally don't show up on credit reports unless they are sent to collection agencies, which often do report them. And at that point, there is no distinction between medical collections and other collection accounts. "When a medical debt is outsourced to a third-party collection agency, it is treated the same as other debts that are in collection," says Jeff Richardson, the vice president of public relations for VantageScore Solutions.


FICO's policy is similar: It does not distinguish between medical and nonmedical collection accounts when calculating credit scores. In an Associated Press article, a FICO representative noted that a single collection account could cause a 780 FICO score to drop by 105 to 125 points. That's enough to bump someone from a "prime" score to an "off-prime" or even "subprime" score.

[AJK]

If a charge is disputed to the best of my knowledge it won't (at least after disputing with the credit bureau) affect his credit until a court rules he really owes it. Thats what I would do. Send a formal cease and desist letter and wait for it to drag out. They will settle for less.

This is unclear and confusing. (Also not sure where the court thing comes in.)

You can't send a debt validation letter until there is a claimed debt, normally once it's been sent to a collections agency (as the providers themselves rarely send debt notices).

And all a debt validation does is exactly that: a demand that the debt be validated. In this case, the debt is valid, and it will in all likelihood be reported to the CRAs following the validation. Once that has happened, and the credit is negatively affected, it is at THAT point the debt can be "settled." (though the debtor may be given a chance to settle prior to this point)

There's a lot more to it than the above, but that's the general gist.

[steeeveknowsbest]

You have a mathematical error. If 99% of scumbags live in a town, it doesnt meant 99% of the town are scumbags.

If a charge is disputed to the best of my knowledge it won't (at least after disputing with the credit bureau) affect his credit until a court rules he really owes it. Thats what I would do. Send a formal cease and desist letter and wait for it to drag out. They will settle for less.

As AJK pointed out, why should a medical bill be any different than a tuition bill or any kind of debt? Once the deed is done, it's simply $$$ debt.

If the Dr duped him then you're right, and I'm sorry.

kol hakovod. many people would get riled by confrontation and respond immaturely, if it means anything i'm impressed.

You make a good cogent point with the distinction between labeling the town and noticing a trend in an area.

I'll pass along your advice!

@AJK thanks for the link.

[PlatinumGuy]

kol hakovod. many people would get riled by confrontation and respond immaturely, if it means anything i'm impressed.

You make a good cogent point with the distinction between labeling the town and noticing a trend in an area.

I'll pass along your advice!

@AJK thanks for the link.

Sure does, thank you.

[HelpMe]

what is your advice?

Head over to creditboards.com.

They would be considered the #1 site for this type of question/info. If you only care about if it will affect the credit score then AJK has answered this. If you want to try and figure out ways to have the least impact on the score they might be able to help.

[Saver2000]

Head over to creditboards.com.

They would be considered the #1 site for this type of question/info. If you only care about if it will affect the credit score then AJK has answered this.

Wouldn't the "two punch method" work well in this scenario and have less of an effect on his CRA than ajk's "settle" method?

[HelpMe]

Wouldn't the "two punch method" work well in this scenario and have less of an effect on his CRA than ajk's "settle" method?

IIRC it first has to be reported to the CRA's first.

[Saver2000]

IIRC it first has to be reported to the CRA's first.

Correct,  and Ajk's method would also require that it first get reported to the CRA. The difference would be that one gets it wiped clean and the other gets it settled. CMIIW

[Saver2000]

This is unclear and confusing. (Also not sure where the court thing comes in.)

You can't send a debt validation letter until there is a claimed debt, normally once it's been sent to a collections agency (as the providers themselves rarely send debt notices).

And all a debt validation does is exactly that: a demand that the debt be validated. In this case, the debt is valid, and it will in all likelihood be reported to the CRAs following the validation. Once that has happened, and the credit is negatively affected, it is at THAT point the debt can be "settled." (though the debtor may be given a chance to settle prior to this point)

In many instances -  depending on how old the debt is/How many times it was flipped to different CA's - they won't be able to validate it. If that happens, your in luck.

[HelpMe]

Correct,  and Ajk's method would also require that it first get reported to the CRA. The difference would be that one gets it wiped clean and the other gets it settled. CMIIW

It is possible to settle during the validation process but probably not on favorable terms. Once it is reported and the longer you can wait the better the offers will be. All the years I spent at CB had nothing to do with credit repair so I am just going by what I read/recall. They would ask me the same question I get asked here “what are you doing here”.   

[Saver2000]

It is possible to settle during the validation process but probably not on favorable terms. Once it is reported and the longer you can wait the better the offers will be.

Again,  that's regarding "settling". For the two punch method,  it must be initiated within 30 days of when it originally was reported by the CA to the CRA.

All the years I spent at CB had nothing to do with credit repair so I am just going by what I read/recall. They would ask me the same question I get asked here “what are you doing here”.   

Ah, so we aren't the only ones not getting straight answers.  Now we don't feel bad anymore. 

[moko]

I'll preface that this is 2nd hand knowledge and not 1st. I had a friend who was in a similar situation. He had a procedure done which was covered by insurance  but the billing was done wrong a few times over and the insurance company rejected it again and again eventually using some loophole they said it was past the time to submit the billing and they are not liable. In the meantime it was passed on to a collection agency which reported it since he had done the procedure he was legally liable for the debt unless he sued both the doctor/hospital and/or the insurance co. this all took place just after he signed on a house the mortgage co. originally refused him  bec. opf the collection item(it was a large sum) but after he gave the an explanation including paper work the approved him.
Point being that while on your CR there is no def. between debt and debt a lender may differentiate.

[Zevi16]

I hope someone can help.
A family member was in america on a green card but hadnt got Health insurance yet. He was rushed to the ER in Jersey Shore Hospital. CUt a long story short, he has a bill of $26k. He managed to knock it down to $8k so far. Is there anything he can do to rid himself of the bill completely or at least knock it down significantly lower?
He is also worried about his credit score. As of now it has already gotten to the Hospital's own collection agencies. So was that already a hit in itself?
If someone can help in any way, it would be greatly appreciated!

[MarkS]

I hope someone can help.
A family member was in america on a green card but hadnt got Health insurance yet. He was rushed to the ER in Jersey Shore Hospital. CUt a long story short, he has a bill of $26k. He managed to knock it down to $8k so far. Is there anything he can do to rid himself of the bill completely or at least knock it down significantly lower?
He is also worried about his credit score. As of now it has already gotten to the Hospital's own collection agencies. So was that already a hit in itself?
If someone can help in any way, it would be greatly appreciated!

Has he applied for Charity Care with the hospital?

[Zevi16]

Has he applied for Charity Care with the hospital?

He got declined because he transferred some money from england just then.

[YesThatsMe]

I hope someone can help.
A family member was in america on a green card but hadnt got Health insurance yet. He was rushed to the ER in Jersey Shore Hospital. CUt a long story short, he has a bill of $26k. He managed to knock it down to $8k so far. Is there anything he can do to rid himself of the bill completely or at least knock it down significantly lower?
He is also worried about his credit score. As of now it has already gotten to the Hospital's own collection agencies. So was that already a hit in itself?
If someone can help in any way, it would be greatly appreciated!

@Zevi16  What ended up happening here?

[Zevi16]

@Zevi16  What ended up happening here?

They agreed to lower it to something a little lower but he paid it all. I think it was around 6.5k