Medical Collection Agency without Notification Reported to Credit Bureaus a debt of $20

by R. Brzyski

I did not receive any notification from a medical bill collection agency that a debt was owed; no letter or phone call; only found out the $20 debt was reported to credit bureaus through my credit monitoring company. I found out this was a result of a co-pay from a hospital. I was paying off another debt to the hospital incremental monthly payments. I overpaid by $5.00 and the hospital applied the $5.00 to the invoice they sold to the collection agency. I contacted the collection agency when I first noticed a major derogatory on my credit reports. I was told by the medical collection agency I acknowledged the debt when I made a payment of $5.00 to the hospital after they bought the account. That is not true, the hospital sold the debt of $25.00 to the collection agency and then applied the overpayment of $5.00 to the debt they sold to the medical collection agency.

I had no knowledge of this debt and now each is stating they are not responsible for assisting me in removing from my credit reports, should I pay the debt. I've been corresponding with both the hospital and medical collection put this as derogatory for $20 on my credit report is insanity. Each one says they will call me back; however, it seems like I am chasing them. What are my rights?

Comments for Medical Collection Agency without Notification Reported to Credit Bureaus a debt of $20

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Apr 27, 2010
inaccurate medical debt on credit report
by: Gerri

Thanks for submitting your question about your credit reports on our Q&A page.

This kind of situation absolutely infuriates me and I'm sure it does the same for you. We have written us a page that specifically describes what to do if you have an inaccurate medical collection account on your credit reports.

Learn how to dispute credit report mistakes here.

In your case, you'll want to start by disputing the through the credit reporting agency. But but by law, you can also disputed item directly with the collection agency that is reporting that. Make sure you use the address listed on your credit report for the collection agency.

I would also recommend you send a letter to the medical provider as well, since it is their mistake that has caused this item to end up on your credit reports. Let them know it is not result you will be consulting an attorney about a credit damage case. And if they don't resolve it, I would suggest you do consult an attorney.

Please let us know how this turns out and let us know if you have further questions.

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