Bill sent to collections eventually paid by insurer

ER visit was coded incorrectly by hospital and was denied by insurer. Appealed denial to insurer with correct diagnosis/treatment info and 15 months later they finally paid.

In the interim the hospital sent the bill to collections and the item now shows on my credit report as a collections action that is paid in full, although it does not specify that that it was paid by the insurer and not myself. I had no contact with the collection agency throughout.

Is there any recourse to have this removed as the bill was eventually paid directly to the hospital by the insurer? I'm thinking perhaps at least the hospital would remove it as a good-will gesture since they were paid.

Comments for Bill sent to collections eventually paid by insurer

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Feb 19, 2012
Bill sent to collections eventually paid by insurer
by: Debtcollectionanswers

Given that the hospital erred by using the wrong code and that it was paid in full eventually by your insurer, I would contact the hospital to ask if it will change the information being reported to the credit reporting agencies. If it agrees, you should order new copies of your credit reports a month or two later to confirm that it did what it said it would.

Another option is to contact the credit reporting agencies directly to try to get your credit record information corrected. You do that by filing a dispute. Check with all three of the agencies -- Equifax, Experian and TransUnion -- to identify which ones are reporting the information and then file a dispute with each one that is. You can do all of this online.

Once an agency receives your dispute, it must conduct an investigation and notify you of the results within 30 days. Be forewarned however, that it can be difficult to get inaccurate information in a credit record removed. You may have to be persistent and you may even need the help of a consumer law attorney who represents consumers in Fair Credit Reporting Act cases to get the information removed once and for all.

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