Unaware of debt, collection added to credit report. Help!?

Question

I live in NC. Yesterday I received a letter in the mail from a collection agency in CA stating that I owe $3900 to a hospital I used to work for. It said "a negative credit report reflecting your credit record may be submitted to all credit reporting agencies if you fail to fulfill the terms of your credit obligations". I immediately got online and checked my credit report, and found that the collection agency had already added this collection to my credit report! I was horrified! My credit is (was) perfect, my score is over 750, and now this? Nobody has ever contacted me about this debt before and I was unaware of it. I pay my debts (or else I wouldn't have a good score) and I am very upset that this blemish has been placed on my credit. I disputed the collection through the credit bureau, but is there anything else I can do? I am willing to pay the money if they can prove I owe it, but I thought I was cleared of this debt years ago. I do not want it to show up as a "paid" collection debt on my credit report. I want it completely removed! Thank you for any information/advice anyone can give me.

Answer 1

Yes contact the original creditor to see if the debt is legit.  You should be able to solve this between either contacting them or the hospital you worked for.  This should restore your credit back to it's Pristine position.  Just don't try to purchase anything until this is resolved.

Answer 2

Well they can certainly prove that you owe the money and it will be up to you to prove that you paid the debt in full.  They may have sent bills to you at the address you listed when you were at the hospital, but since you moved to NC, your mail must not be/or the forward request has expired.

Your dispute would have a basis if you had copies of checks or credit card statements for the amount of the bills.  It will be up to you to show proof that this debt is satisfied.  Your time would be better spend looking for that documentation before contacting the collection agency or credit reporting agencies.  Even if you do get it removed make sure it does not pop back on there in another six months or so.

Answer 3

First of all, this may be from one of the many notorious junk debt collection agencies who try to intimidate people.

Check this web site to see if this agency is listed, if it is, you will find out what to do about them

http://www.budhibbs.com/drowning_in_debt...

If this debt is not yours and you have disputed it with the CRA's, they will by law have 30 days (they can get extension for 15 if needed) to have the creditor prove it is your debt (validation).  If it not validated, then they will remove it from your report.

Just so you know, the statute of limitations on collecting a debt in NC is as follows:

Open Account (credit card):  3 years

          Sale of Goods: 4 years

          Written Contract: 3 years

          Domestic Judgment: 10 years

          Foreign Judgment: 10 years

Medical bills fall under the Fair Debt Collection Practices Act because medical debt meets the definition of a "debt" under rule 803(5):

so they are treated as open accounts, which means if this debt is older then 3 years, then they can not seek civil suit in court.

Hope this answers your question

LEGAL DISCLAIMER: The advice contained herein is for informational purposes only. It is not to be construed as Legal Counsel nor Legal Advice.

Answer 4

In Canada when Collections are paid they are totally removed from your credit bureau within a  few months(when the Company gets around to reporting it to them), I suspect this is the same in the US as the same Companies - Equifax are in the market their too.  If you believe you have already paid it contact the company directly - by pass the collection agency.  Sometimes companies forget to let the collection agency know it was paid...or was a legitimate dispute that they made and then fixed.  

If its one collection - its not going to affect you much if you had a credit score of over 750 before.  Most credit places will overlook it and assume its a disputed item - although it helps that you have made that claim with the credit bureau.  And the scoring system won't value it at an amount that will really adversely affect your ability to obtain credit.

Relax and problem solve your way out...it can be frustrating.  If you can't get far keep asking to speak to the boss or credit manager.  And if you do legitimately owe it make payment arrangements, either with the company or the collection agency.  (The Collection Agency will tell you you can't do it with the company but you can - just remind them to let the Collection Agency know you have arrangements with them.)

You may even be able to have the amount reduced - Ask what they will settle for,or  ask if they will deduct the interest if you pay the principal.  You can offer to send in post dated cheques or to have a certain amount withdrawn from your credit card or bank account every month.

Good Luck - its frustrating, but mistakes like this happen all the time and negatively impact a persons credit.  You can get it fixed.