How to Dispute Medical Collections on Credit Report

Medical collections appearing on a credit report typically arise from unpaid medical bills. The presence of a medical collection on a credit report can negatively influence an individual’s credit scores, affecting their ability to secure loans, housing, or employment. Consumers can take steps to dispute inaccurate or unfair medical collections.

Understanding Your Medical Debt and Collection

To address a medical collection, understand its details and gather documentation. You can identify a medical collection on your credit report by reviewing entries that typically list a collection agency as the creditor, along with information about the original healthcare provider, the amount owed, and the date the account went into collection. Recent changes mean that medical collections under $500 should not appear on your reports, and unpaid medical bills generally do not appear until they are at least one year past due. Paid medical collections also should no longer appear on credit reports.

To dispute a collection, collect specific documents. These include original medical bills or statements from the healthcare provider, Explanation of Benefits (EOBs) from your health insurance company detailing what was covered and what you may owe, and proof of any payments already made, such as bank statements, canceled checks, or credit card statements. Keep detailed records of all correspondence with the healthcare provider, insurance company, and collection agency.

The Fair Debt Collection Practices Act (FDCPA) provides consumers the right to request debt validation from a collection agency. This validation notice must be provided by the debt collector within five days of their initial communication with you. It should include the amount of the debt, the name of the creditor, and a statement that the debt will be assumed valid unless disputed within 30 days. Requesting validation within this 30-day window legally requires the collection agency to cease collection activities until they provide verification.

Disputing with the Collection Agency

After gathering documentation, formally dispute the debt directly with the collection agency. Send a debt validation letter, preferably within 30 days of receiving initial communication from the agency. This letter should request specific information, such as the original creditor’s name, the exact amount owed, and proof that the debt is legally yours. Send this letter via certified mail with a return receipt for proof of delivery.

Upon receiving your written debt validation request, the collection agency must stop all collection activities under the FDCPA. This includes phone calls and letters, until they provide verification. If the agency continues collection efforts without providing validation, it could be a violation of the FDCPA.

Once the collection agency responds, evaluate the information they provide. If the debt is validated and appears accurate, you might explore options such as negotiating a pay-for-delete agreement, where the agency agrees to remove the collection from your credit report upon payment. Alternatively, you could discuss setting up a payment plan directly with the agency or the original healthcare provider to manage the debt. However, if the debt is not validated, is inaccurate, or the agency fails to provide sufficient proof, reiterate your dispute and demand its removal from your credit report.

Disputing with Credit Reporting Bureaus

Dispute medical collections with the major credit reporting bureaus—Experian, Equifax, and TransUnion. This can be done independently or with a dispute to the collection agency. You can initiate a dispute online, by mail, or by phone with each of the three bureaus. Dispute with all three bureaus if the collection appears on each of your credit reports.

When submitting a dispute to a credit bureau, provide clear information about the disputed item, such as the account number and the reason for your dispute. Include copies of any supporting documents you gathered, such as EOBs, proofs of payment, or any debt validation letters received from the collection agency. Keep original documents and send only copies.

Under the Fair Credit Reporting Act (FCRA), credit bureaus must investigate disputes within 30 days of receiving your request. This period can extend to 45 days if you provide additional information during the initial 30-day window or if you accessed your credit report through AnnualCreditReport.com. The bureau will notify the information furnisher, such as the collection agency, of your dispute, and they must also investigate.

After the investigation, the credit bureau will inform you of the outcome. If the investigation confirms an inaccuracy, the item should be corrected or removed from your credit report. If the dispute is unsuccessful but you still believe the information is inaccurate, you have the option to add a brief statement to your credit report explaining your side of the dispute.