Don't Pay Medical Collections (Watch This First) 2023

Summary

This video discusses significant changes in medical debt reporting as of 2023, impacting over 70% of credit reports. Key updates include the prohibition of reporting paid medical collections and an extended 365-day period before unpaid medical debts can affect credit scores. The video also outlines strategies for disputing incorrect medical debt reports, emphasizing the importance of adhering to regulations like the End Cap Act. It concludes with advice on contacting credit bureaus and leveraging legal recourse for violations, while promoting a credit management service for credit repair.

Takeaways

• 🚫 Paid medical collections can no longer be reported to credit reports as of 2022.
• 📈 The time frame for medical debts to be reported on credit reports has increased from 180 to 365 days starting from January 1, 2023.
• 🏥 Medical collections are a significant contributor to bad credit, accounting for over 70% of negative items on credit reports.
• 💡 If a medical collection is reported before 181 days from the date of service, it's a violation of the Fair Debt Collection Practices Act (FDCPA).
• 📝 Consumers can dispute incorrect medical collection reports by sending a certified letter to credit bureaus citing FDCPA violations.
• 📞 Credit bureaus should be contacted before 4 pm for the best chance of a successful dispute over the phone.
• 💬 Being polite and assertive during communications with credit bureaus can improve the chances of a successful dispute.
• 💼 The speaker's company offers credit management services, including DIY credit dispute programs and legal support for credit report issues.
• 🚫 As of the first half of 2023, Experian, Equifax, and TransUnion will not report medical debt collections under $500.
• ✉️ Always send disputes via certified mail to ensure there is proof of communication with credit bureaus.

Q & A

What significant change occurred in 2023 regarding medical collections and credit reports?

In 2023, paid medical collections can no longer be reported to credit reports, which is a significant change as medical collections make up over 70% of negative items on credit reports.

Why is the change regarding paid medical collections on credit reports important?

This change is important because it prevents medical debts that have been paid from negatively impacting individuals' credit scores, which can be a major factor in financial decisions and opportunities.

What is the new timeline for medical debts to be reported on credit reports starting from January 1, 2023?

As of January 1, 2023, there is now a 365-day period within which some form of payment or payment agreement must be made on a medical debt before it can be reported to credit bureaus, up from the previous 180 days.

How does the speaker suggest handling a situation where a medical collection is reported before the 181-day period as per the End Cap rule?

The speaker suggests sending a certified letter to the credit bureaus stating the violation of the End Cap rule, requesting the immediate deletion of the collection from the credit report, and gathering all records to support the claim.

What is the 'No Surprises Act' mentioned in the script, and how does it relate to medical collections?

The 'No Surprises Act' is a law that protects consumers from unexpected medical bills. In the context of the script, it is mentioned in relation to the requirement for hospitals to provide notice before a medical debt can be sent to collections, which can then be reported to credit bureaus.

What services does the speaker's company offer to help individuals with credit management?

The speaker's company offers a full-service credit management program, a DIY program called 'Dispute Like a Pro', a pre-litigation program for legal actions, and an identity theft program.

Why should individuals not dispute credit report issues through Credit Karma according to the script?

Disputing through Credit Karma may waive an individual's rights to participate in class action lawsuits against credit bureaus, which could be detrimental if there are issues with the credit reports.

What advice does the speaker give for contacting credit bureaus regarding credit report disputes?

The speaker advises contacting credit bureaus before 4 pm, being polite, and clearly stating the violation of reporting guidelines. They also suggest recording the call as evidence of the interaction.

What is the new reporting threshold for medical debt collections starting in the first half of 2023?

Starting in the first half of 2023, medical debt collections under $500 will no longer be reported by Experian, Equifax, and Transunion.

What action should be taken if a credit bureau does not remove a medical debt collection that is under $500 as required?

If a credit bureau fails to remove a medical debt collection under $500, the speaker suggests sending the evidence of the violation to the Consumer Financial Protection Bureau (CFPB) and filing a complaint with the Federal Trade Commission (FTC).