Hospital biling department's mistake submiting claim to my insurance cost me collection on my credit report

by Julie
(Minooka,IL,USA)

After checking my credit report I found collection for medical bills (service was done 2007). I have insurance and it pays 100%. Hospital never send me a bill and I never got collection letter. They both had my old address, I did not live there since 2003 (I found out that after calling to collection agency).

I have no idea how they could get my old address mistaken, because all other bills for the same hospital's visit was paid by my insurance and it had new address (if I can say that since I live here since 2003) I feel that unfairly, because of hospitals billing department clerical mistake my credit is being ruined. And collectors failed to notify me by my current address.

In case of this importance, shouldn't mail be returned back to collections agents if it can not reach me? Does hospital have right to sell me to collection agency even then their claim staff is at fault? I appreciate all ideas about what can I do in this situation.

Will the record still stay on my credit report after my INSURANCE (I do not have any co-pay) pays the bill?

Comments for Hospital biling department's mistake submiting claim to my insurance cost me collection on my credit report

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Nov 21, 2009
 medical bill collection accounts on credit report
by: Gerri

Wow, it sounds like this medical bill mix up has created a real mess for you.

The first thing I suggest is that you start a file. Keep copies of every piece of correspondence about this matter, copies of your credit reports, and notes from every single conversation you have with anyone about it.

You have the right under the Fair Credit Reporting Act to dispute incorrect information on your credit report. You must do that by either contacting the credit reporting agency (or agencies) or the furnisher (the collection agency that is reporting it).

(If you don't have your credit reports from all three agencies, I would recommend you get them asap.)

If you can get a letter from the hospital admitting the mistake, then you can supply that to the credit reporting agencies (CRAs) and/or the collection agency with your request to have the item deleted. That would probably be the easiest route. If they won't give you a letter, then you can still dispute the collection account on your credit report, but it may be hard to get them to believe your side of the story. Still, you must at lest try.

If this doesn't work, then you can consult a consumer law attorney to see if you have a credit damage case against the CRAs and/or the collection agency. Your records of your attempts to straighten it out will come in handy here.

If other creditors take negative action against you as a result of this mistake (raise your interest rates or lower your credit limits), keep documentation of that. It may demonstrate credit damage.

Please let us know what happens and if you need further direction.
Nov 22, 2009
 Thank you
by: Julie

Thank you very much for taking time to look into my question and giving me very informative answer. Now I now what I can do. Unfortunately, I did not collect any names of persons I was talking(numerous times) in hospital or collection agency. It is very good idea and I will start a folder. Thank you again.
Dec 29, 2009
 Same thing happened to me
by: Phil

I went to ER and while there, they pulled up my account but, it had my old address. I gave them my new address but, they failed to update their computer system with it. They billed my insurance company with no problem and my insurance paid but, there was just over $900.00 which I was responsibloe for but, I was not aware of this since I never received a bill from them.

They turned me over to a collections agency. When I was contacted by the collection agency, I called the hospital to inquire as to why they did this when I gave them my new address, they would not respond. I paid the hospital directly what I owed them but, the collection agency still keeps calling me.

I think it would be a good idea for people to take the bull by the horn and start robo calling the 1-800 numbers of collection agencies and jack up their phone bills to thepoint that they are put out of business and, to file law suits against these hospitals that keep ruining peoples lives.

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