Home » Did you know that Medical Debts can lower your Credit Score!

Did you know that Medical Debts can lower your Credit Score!

I was recently reading an article in Money Magazine called the “The Unknown www.yourmoneymentor.com Debt That’s Dragging down Your Credit Score”.  According to Money Magazine those unknown debts are “Medical debts”. 

Medical debts are debts you accumulate from past due doctor or hospital bills.  According to the Consumer Financial Protection Bureau, many consumers are not even aware that they have medical collections accounts on their credit report.

Once a medical provider has been unable to collect on a past due medical bill, the bill is either collected from a third party collection company are sold to a debt collector.

But consumers should understand that medical accounts that are sold to a third party, can still be disputed like charged off credit card debts.  A consumer still has the right to dispute those debts and request that the third party who is collecting on the debt provide validity of the debt.

If you’re unsure of the debt validation process, I wrote an article explaining how the debt validation can help you with eliminating past due collection accounts.

Past due medical accounts along with charged off credit cards can be validated, if a consumer notices that a past due account has been inserted on their credit report, they have the right to request validation.

Medical accounts still fall under the same FDCPA scrutiny as charged off credit card collection accounts, so the rules that fall under the FDCPA relates to medical accounts as well.

If you have a past due collection account that is being reported on your credit report before you pay, make sure you have negotiated that the trade line be removed from your credit report.  Paying the past due medical bill will not increase your credit score, the only thing that increases your credit score is having the trade line removed!

Learn how the Federal government laws can help you  to eliminate debts and increase your credit score.----->HERE!

 

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