Expert: Ray A Miller - 11/18/2010

Question
QUESTION: Collection account was posted today on my credit report for an amount for which was paid days earlier to the original creditor by my health insurance..is this legal? Fair? What should I do? how can i have them remove it from my CR?

Hospital visit – March 3rd
Original Bill $ 358

Collection agency sent notice on August 30

I Sent dispute letter on September 29th

I received Verification of the debt/attachment received on November 4th by collection agency (it wasn’t signed by the doctor – some other name is in there)

On November 4th I received letter from my health insurance stating that they have paid the doctor and that my responsibility for the provider is only $32. Statement also mentioned to wait for provider's final bill.

November 12th collection account showing on my credit report for $358

Please Help!

ANSWER: Ask the original creditor to contact the collection agency and have them remove the item from your credit history.  I am sure they do not want to lose a customer over something like this.

If this does not work, disputed the items on your credit and send a copy of a letter from the insurance company explaining why payment took so long.

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

QUESTION: I spoke to original creditor. The original bill was $358. They posted the payment from my health insurance on 11-9.  There is a balance owing of $32.68, which is the "patient responsibility" portion of this bill.  They said the bill rests with collection agency and must be paid to them.
    
I called and spoke to CA They have been notified by Emergency Physicians Group of the payments/write offs, and they now have the account at $32.68, which I will need to paid to them.  

I asked the claims manager about reporting of this bill to the credit bureaus. The claim manager spoke to her supervisor and said it was agreed that they would pull this back from the credit bureau.

Today I saw that on my CR it says “account information disputed by consumer” and that the amount it’s the same $358 and not $32.68.

Is this a pre-step before removal? Do they need to put because otherwise if they remove it they are in violation? What should I do?  

Answer
Send the creditor a letter explaining that your intent was to get this item removed entirely and not just disputed.  Mention that if they resist, you will refer the matter to your state's Attorney General, Consumer Affairs and the BBB.

I hope you have found this information helpful.