Forums
I found out recently that I have a negative collection account of $300. It is dated 2006 and comes from a clinic I visited once at that time. When I got a bill from the clinic I sent them my insurance details to claim. However it seems they never did so and instead reported me to Equifax.
I called the clinic, but they have all new staff now, they told me that since it's been more than 18 months insurance company won't pay it now.
What should I do? Pay it off? But it will stay for 7 more years as a record, right? I didn't do anything wrong. Why should I be punished?!
Hi Erica
Send a debt validation letter by certified mail to the Collection Agency or the creditor whose name appears in your credit report for the clinic payment. If they cannot validate your debt within 30 days, send a dispute letter to the CRAs telling then that you do not agree with the listing. The CRAs will verify it with and remove the listing from your credit report. Now if they can validate your debt, try to come to a Pay for deletion agreement. If they agree for PFD, the listing will be removed from your credit report as soon as you pay back the debt. But make all communications in writing and under certified mail. But if they do not agree to pay for deletion, try to pay back the debt, as it would be shown "paid" in your credit report which is no doubt better than a debt listed as not paid.
Hi Erica
Since the collection amount is not huge, just $300, try to come to a pay for deletion agreement with the creditor or the CA as Justin said and pay back the debt. It is true that you are not wrong, but it may be the case that the insurance company refused to pay the amount to the clinic for some reason or the other and so they reported it to the CRAs.
I agree with both of the above posts and would also remind you that if you cannot get a PFD that the listing will remain for 7 years after the initail listing not 7 years after payment
I agree with CMBV on the fact that if you cannot make them agree on pay for deletion agreement, the listing will stay for seven years form the date it got listed on your credit report. However, even if you cannot make them agree for a PFD, you should pay back your debt because firstly, the debt is for only 300$ and secondly, a paid listing always gives a better image to your credit report than an unpaid listing.