Did you forget about that medical bill from a few years back because there were so many others to sort out? Or maybe you knew you owed the money, but couldn’t quite afford to pay the bill at the time.
Either way, the account may have been sold to Medicredit and it’s now on your credit reports. And you desperately want it removed.
Medicredit Collection Accounts
Who is Medicredit? Simply put, they’re a debt collection agency that buys past-due medical debts for pennies on the dollar hoping to collect and make a profit.
So you could pick up the phone and demand that Medicredit delete the account because you don’t owe them a dime. But you probably won’t get very far. A better idea: make them prove that you owe the debt and they have a right to collect as mandated by the Fair Debt Collection Practices Act.
But if they’re successful, negotiate a settlement offer to have the collection account removed in exchange for payment. It’s a win-win situation because you’ll pay less while having the item removed.
Even better, you can have a peace of mind knowing the negative entry is gone and the collection calls will stop. (And you won’t have to worry about being sued).
Keep reading to learn how these strategies can you get Medicredit collections removed from your credit reports.
Want to Remove Medicredit from Your Credit Report?
Send a Debt Validation Letter
By sending Medicredit a debt validation letter, they will be forced to verify the debt. But here’s the deal: you only have 30 days from the initial date of contact to do so or they don’t have to respond to your request. (If it’s been over 30 days, move on to the next step).
The letter will prompt the debt collector to prove that the debt belongs to you and they have a right to collect on it. They must respond within 30 days of your request with documentation to substantiate their claim or right to collect. Otherwise, they have to remove the item from your credit report.
This could work in your favor for a few reasons:
- Oftentimes, documentation gets lost when collection accounts change hands. This makes it hard for the debt collector to provide proof that you owe the debt.
- Some debt collectors won’t bother responding to the debt validation letter if they’re swamped or if it’s a small amount. And it’s not uncommon for these letters to slip through the cracks and go unanswered.
- If Medicredit doesn’t respond within the 30-day window and the account in question still remains on your credit report, you can file a dispute with the credit bureaus to have it removed. The dispute would be on the grounds of the collection agency refusing to validate the debt within the required 30-day timeframe.
But what if Medicredit responds to your letter with adequate documentation? Don’t fret. Simply move on to the next step.
Request a Pay for Delete Agreement
Bad news: You may have to pay at least a portion of what you owe.
Good news: You may be able to negotiate a settlement amount that will have the item removed once the account has been paid in full.
The latter is called a pay for delete agreement. To get the ball rolling, draft up a letter to the debt collection agency requesting that they take a percentage of the outstanding balance to settle the account in exchange for deletion. Specify the amount and the date by which you will pay the amount in full.
(There’s a handy template right over here to get you started).
But when doing so, refrain from stating an amount that’s too high in case they want to negotiate. They may actually accept an extremely low amount if they’re desperate to collect on the account and move on. Otherwise, be prepared for a few exchanges before both parties reach an acceptable amount.
But you must do this in writing in case the debt collection agency agrees but doesn’t follow through on their end of the deal. Otherwise, you’ll be left empty-handed since a phone conversation isn’t enough proof to verify you entered into an agreement in the first place.
Get Help from the Professionals
Haven’t had much luck validating the debt or requesting a pay for deletion agreement? You have the option to start from scratch and hope for the best. Or, you could alleviate the added stress by seeking professional help from a trusted credit repair company.
You don’t have to settle for a damaging collection account sitting on your credit report for seven years (and tanking your score). Use these tools to take action, and if all else fails, hire a professional to do the legwork for you. You’ll be so glad you did when your credit score starts to recover.
Want to Remove Medicredit from Your Credit Report?
List of Debt Collection Agencies
Here’s a list of some of the nation’s most popular debt collectors that cause damage to your credit.
- Alliance One
- Allied Interstate
- Alltran Financial
- ARS National Services
- Cavalry Portfolio Services
- Credit Collection Services
- IC Systems
- LVNV Funding
- Midland Credit Management
- MRS Associates
- NCO Financial
- Portfolio Recovery Associates
- RJM Acquisitions
- Transworld Systems
- Zwicker & Associates