Medical Collections
June 16, 2008 by Eleanor
Filed under About Scores and Credit, Disputes, Loan Programs
Medical Collection Boo-Boo’s are usually the hardest things to remove - although the Fair Credit Reporting Act and the have very specific statutes about them.
The final rule of HIPAA (the Health Insurance Protability and Accountability Act) makes sharing personal medical record informations illegal with with public. Remember all those forms you now sign when you check into the doctor’s office – that’s what it’s about.
The rules of HIPAA specifically includes past, present and future payments of health care. The way most people get collections is because of co-pay. They go to the doctor, pay their co-pay – and then leave the rest to the insurance company. When the insurance company does not pay all of the bill, the balance is sold to a collection company, and added to your credit report.
These collections DO pull your credit score down – however FHA does not require that they be paid prior to closing on a mortgage loan!
If you are considering a mortgage loan, please contact Steve and Eleanor Thorne, First Financial Services, 919-851-3031 x 104. We can do a free credit analysis that includes a “What If’ Scenario” to see what will happen to your scores when something changes! 8o)
