Expert: Regan Shinski - 9/23/2009

Question
QUESTION: I've been going rounds with various medical entities about some charges appearing on my credit report. I had a procedure done a few years ago at my approved medical location. Then a bill came for some medical office that I had no business with, let's call them Business X.

I found out that the hospital contracts out their readings and although I went to my approved medical location, the insurance company will not pay for the services provided by Business X. So Business X reported me for deliquencies on my credit report and refuses to remove them. I've contacted them and told them I had no knowledge of doing business with them and did not authorize the work and requested that they remove the items from my credit report. They are refusing.

Shouldn't Business X be going after the hospital for their payment, they are the one who contracted them for the work and I had no control over that? I really need some help in who I should pursue this with further...

ANSWER: Hi Minnie:

This is a complex issue.  Playing devil's advocate, it is possible (likely?) that you gave permission to use their services.  It would be buried in that stack of papers the medical office makes you sign.  So the first step is to nail down with your original provider exactly where you gave them permission to use that facility for billed services.  This is also the key to if "Business X" should go after you or the hospital in their billing.

Assuming the hospital's paperwork is in order - from their perspective - you still have options.  Is "Business X" reporting or a third-party-collection agency?  You said "Business X" so I will proceed on that assumption, but you have different rules and options if it is a third-party collector - so let me know.

The first step is to send a dispute letter directly to the credit reporting agencies.  They should contact "Business X" and respond back to you in about 30 days.  Sometime this step alone takes care of it.  This step may need to be repeated.  You can also send letters to "Business X's" higher ups.  Just be careful how it's worded as it potentially can be used against you down the line.  Also, find all trade or professional organizations "Business X" belongs to, including the Better Business Bureau, and send complaint letters to them.

There are also very successful options to dispute using HIPPA laws, but it is much more complicated and really should be customized with a good credit repair company or attorney.

If the records are not in order and you firmly believe they were not authorized to send your information to "Business X", you can pursue more aggressively.  There are HIPPA and other privacy violations.  This is a serious charge, be careful using it and be certain you are correct.  Like I said, there is usually a standard provision in those admission papers.

In general, in both cases, the goal is to flood the business with complaint letters from every angle so that it is easier for them just to delete the account, rather than keep defending themselves - that is the most simplistic way I can put it.

At some point, if there is no satisfactory response, you have the option to take it to court.  So in the interim, it is critical you keep every shred of paper related to this.  I would stay off the phone in all cases unless you are LEGALLY recording the call.  Some states have strict recording laws, so look this up and be certain you are not breaking the law if you are recording a call.

You also have the option - I think further down the line - to offer a "Goodwill" letter.  This basically says, "Hey, I don't agree with this but I'll give you $XXX.XX IF you delete it from my credit reports."  Many people have had success with that route as well.

You said a "few" years ago, so statute of limitations may apply.  Also, in general, they can report the account for up to seven years from the date of service.  Verify they are in compliance with that statute as well.

Remember, virtually none of this applies if we are talking about a third-party collection agency.

We are a credit repair company that has literally deleted thousands of accounts similar to this.  If you feel you need additional help or professional assistance, please fell free to contact me directly.

Good luck!

Regan
mbscompany@aim.com
813-454-1459

---------- FOLLOW-UP ----------

QUESTION: Business X turned the case over to a collection agency as the charges were from almost 3 years ago. The collection agencies are currently investigating my disputes. I also have tried contacting the BBB (just got their letter yesterday) and currently have the insurance company retrieving my files to help see if they will pay the bill. I even filed a complaint with the Dept of Insurance against my insurance provider for not paying the bill in full (they paid other similar procedures for the same medical facility).

I don't recall signing any paperwork at the hospital itself where the procedures took place. Should I contact the individual departments and see if they can give me a copy of what I signed?

Answer
Sounds like you have the right idea.  If the complaints don't work, file them again or file them with someone else.

I think you should get the papers.  A common defense will be that you signed a release giving them permission to perform those tests/readings.  The loophole may be vague.  Also, if it was a medical emergency (I don't think you said it was) most states have laws giving the provider some leeway in seeking the best care and opinions for your health.  I'm not saying you don't have a case or they did it right, just saying to be sure before you go to far.

Since you are now talking about a third-party collection agency the Fair Debt Collection Practices Act (FDCPA) now comes into play.  One of the best ways to settle the debt and collection is to prove they are violating that statute.  Ask for debt validation under the FDCPA.  I know you dispute the account in its entirety, but is there anything reporting wrong on any credit bureau report?  Are the exactly the same?  If they are not essentially the same on each report, it's likely one is in error (how can both be right for the same account)  This can be a violation.  Once they clearly violate - and you have indisputable proof - then the FDCPA calls for damages and fines.  This becomes the basis for your potential lawsuit and/or settlement of the debt.

It's a complicated step and difficult to get into all the nuances in the written form here.  Please call if you have further questions or if I can be of assistance.

Thanks
Regan
mbscompany@aim.com
813-454-1459