Advice on next action to take

[donnyb]

Hello all,

To start off I want to say this website is very informative! I have learned quite a bit by just reading the beginners credit information section. I wish I came across this website months ago as this information would have helped me I believe. I apologize beforehand if this post is rather lengthy.

My current situation:

I went through a lender to hopefully receive a pre-approval for a home loan. I came across two medical delinquencies that were of a small amount. I was communicating with both CA's, paid them, and received paid in full deletion letters from both. This was about 2 months ago.

This past week I receive a third collection letter that I want to handle properly.

Some background on these: I was unemployed at the time in college using loans to stay afloat. There was one point when I was SLAMMED with medical bills and could not pay them. These last three I will admit I let slip through the cracks.

My questions are:

1. How should I go about following up on the 2 I already paid off? If any of these 2 are still present on the report should I dispute it through the CRA or contact the CA to request it removed.

From reading, I believe I will go with the equifax service and ordering a report from all 3. This is because of the 30 day grace period vs 45 day grace period if something was still present on my report.

2. How should I go about the most recent collection letter? I contacted the CA and they said they will settle for 60cents on the dollar. In addition, they stated to have not reported this to the CRA yet or will (which I do not believe if it came to it). What I am afraid of is paying the CA and this somehow still getting reported on my credit. Is there anyway to ensure this will not happen? I ask this because I read that you should try to work with the OC.

Thank you for your time!

EDIT: If you would like more information I will be glad to provide if it will help. Also, I just Opt-out. If I go with the equifax service I will dispute to remove prior addresses and such. Then next would be plan of attack on above.

[TeeJS]

I've been trying to digest the information in the Medical collections/HIPAA process thread (aaacreditguide.com/forums/beginners-credit-information/5869-medical-collections-hipaa-process.html), I'd definitely recommended it a good resource for dealing with medical bills.

The other advice I would give you is to NOT pay/settle anything without getting an agreement in writing first. You're dealing with some of the slimiest creatures in existence!

[donnyb]

Well I read all of that in the beginner section.

I was just wondering how to handle this outstanding med bill. The overview of that hipaa process says to always work with the OC not the CA. I do not know why... Plus the CA is offering 40% off the bill. The conclusion I have come to I believe is to send a Pay to delete letter. This will "hopefully ensure" they will not report it to the bureaus.

As for the first two to confirm they are off my credit. I planned on receiving my free credit report to check if they are removed. If not, call them both and request again to have them removed. After about a month and a half i will sign up for equifax and receive another 3in1 report to make sure.

Does this appear to be a sound way to approach?

[donnyb]

Also,

The CA is in NH. This is why I also asked if this would still be ok to pay off the CA with a pay to delete letter.

382-A:3-206 Restrictive Indorsement
(b) An indorsement stating a condition to the right of the indorsee to receive payment does not affect the right of the indorsee to enforce the instrument. A person paying the instrument or taking it for value or collection may disregard the condition, and the rights and liabilities of that person are not affected by whether the condition has been fulfilled.

doesnt this mean they are not liable for any agreement made by cashing the check?

[TeeJS]

I'd personally try the PFD letters and try to get a written response first. I payed a couple of CAs (before finding this wonderful site) a while back, and they all backed out of their end of the agreement.

That being said, I just sent my first restricted endorsement checks/letters this morning to a couple of OCs where the CA had provided airtight verification. We'll see how it goes. Supposedly both UT and OH allow for it, but I'm not putting a lot of stock into it. We'll see how it goes!