The credit squeeze has millions of Americans looking for safety from medical debt. For the most part you’ll be able to settle your own medical debt, but it will take hard work. Continue reading for some useful information on resolving your own medical debt.
There are 4 parties you’ll be dealing with when dealing with medical debt. They are the medical provider, the person who received the medical services, the debt collector, and one of the three major credit bureaus; Experian, Trans-Union, and Equifax.
Medical bills begin to appear on someone’s credit report after a few things happen. After 180 days of not receiving payment the medical provider writes off the medical bill. After the bill is written off, it’s generally sold to a debt collector. After receiving responsibility for the debt, the debt collector will attempt to collect the debt, usually by any means necessary.
One commonly used tactic by debt collectors is to report the unpaid bill to a credit union. Medical debts are fairly east to verify, but very hard for the debt collectors to confirm. Medical debt can possibly damage your credit score, and should be paid immediately if possible. They are much harder to settle than traditional debts because medical debts are considered service debts. Because of this many people, including debt settling companies, are having a very hard time settling medical debt.
Medical debts are difficult to settle because the consumers are unable to accurately verify the date of service. While the consumer is given a hard time trying to validate the debt, the debt collector, the service provider ,and the credit bureaus are able to easily verify the account.
The first step that should be taken when settling a service debt, such as a medical debt, is to get all the dates of service down in writing. This way you as the consumer will be able to verify whether or not the debt collectors made an honest mistake, or purposely put false information on your credit report.
Your mission as a consumer is to locate and verify all dates of service, and contact your medical provider to secure them.
To locate the dates of service:
1) Call your service provider and ask for the accounts receivable department.
2) Secure the name of the accounts receivable manager
3) Send the accounts receivable manager a letter requesting the account number for the debt that the medical provider assigned, the amount of debt taken off when the debt was sold to the debt collector, and the dates of service.
To be safe make sure you send the letter to the Medical Provider by Certified Federal Mail and request a return receipt. After 30 days you will usually have all the information you need. If you don’t, contact your medical provider again, requesting the same information from them.
Having the dates of service will be enough information to protect you from the threat of medical debt tarnishing your credit record.