Don't Pay Medical Collections (Watch This First) 2023
Summary
TLDRThis 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).
Outlines
🚑 Medical Collections and Credit Reports: 2023 Changes
The paragraph discusses significant changes in 2023 regarding how medical collections can be reported on credit reports. It highlights that paid medical collections can no longer be reported, which is a major development as these make up over 70% of negative items on credit reports and are a leading cause of bankruptcy in America. The speaker also mentions a new rule effective from January 1, 2023, extending the time before medical debt can be reported from 180 to 365 days. The paragraph emphasizes the importance of understanding these changes to protect one's credit score and outlines steps to dispute incorrect reporting, including writing a letter to credit bureaus citing violations of NCAP.
📝 Credit Management Services and DIY Programs
This paragraph introduces the speaker's credit management company and its services, which include a DIY credit dispute program designed to be user-friendly and affordable at $50 per month. The program simplifies the process of disputing credit report errors by providing custom Metro 2 letters. The speaker also mentions full-service and pre-litigation programs for clients needing more extensive assistance or legal action against credit report errors. The paragraph ends with a reminder that the advice given is for educational purposes and not legal advice, and encourages viewers to subscribe for updates and to use certified mail for disputes to ensure proof of communication.
📞 Advocating for Credit Report Accuracy: Tips and Actions
The final paragraph provides practical advice for consumers to ensure the accuracy of their credit reports, especially concerning medical debt collections. It advises viewers to contact credit bureaus to remove any medical debt collections under $500, as major bureaus have announced they will no longer report these. The speaker suggests being polite but firm when speaking with credit bureau representatives and offers tips for effective communication. It also advises recording calls with credit bureaus as they often state that calls may be recorded for quality assurance, which can be used as evidence if they fail to act on their promises. The paragraph concludes with a call to action to subscribe for more content and to reach out to the speaker's company for legal assistance if needed.
Mindmap
Keywords
💡Medical Collections
💡Credit Reports
💡Paid Medical Collections
💡Credit Bureaus
💡End Cap
💡No Surprises Act
💡Debt Collectors
💡Credit Dispute
💡Certified Mail
💡Credit Karma
💡Class Action Lawsuits
Highlights
Medical collections make up over 70% of bad items on credit reports.
Paid medical collections can no longer report to credit reports as of 2022.
The time to report medical debt on credit reports has been extended from 180 to 365 days starting January 1, 2023.
Medical collections must reach 181 days before being reported to credit bureaus.
If medical collections are reported before 181 days, it's a violation of NCAP.
A simple letter can be sent to credit bureaus to dispute early reporting of medical collections.
The No Surprises Act of 2022 ensures consumers are notified about medical bills.
Credit Karma should not be used to dispute medical collections due to potential loss of legal rights.
Certified mail is recommended when disputing credit report items for proof of delivery.
Calling credit bureaus before 4 pm can expedite the dispute process.
Being polite when communicating with credit bureaus can improve the outcome of disputes.
As of 2023, credit bureaus will not report medical debt collections under $500.
If medical debt under $500 is on a credit report, consumers should contact the credit bureaus to have it removed.
Recording calls with credit bureaus can provide evidence if they fail to act on disputes.
If credit bureaus do not remove eligible medical debt, consumers can file complaints with the CFPB and FTC.
The speaker offers a full-service credit management company to assist with credit disputes.
The DIY program 'Dispute Like a Pro' is mentioned as a tool for consumers to manage their credit.
Transcripts
you need to hear what these hospitals
and doctors offices do not want you to
know
so a lot of things have changed in 2023
regarding medical collections how they
can Rapport how they can't report what
is supposed to be deleted from your
credit reports I'm going to cover all of
that in this video because this is very
important because medical collections
make up more than 70 percent of bad
items on people's credit reports which
is insane it is one of the number one
reasons for bankruptcy in America so the
number one thing on the list uh a lot of
people may already know this because it
made headlines it was all over the news
basically paid medical collections can
no longer report to your credit report I
don't think any paid collection of any
sort should report on your credit
reports but I mean that's just me you've
made it right why is it still on there
you know what is this going to help at
the end of the day they want to keep
this information on your credit reports
because it's historical information that
they want other lenders to see but but
again remember
biggest part okay that happened last
year in 2022 is paid medical collections
can no longer report to any of the
credit reporting bureaus and it should
not be on your credit report now one of
the biggest things that went to effect
on January 1st of 2023 it used to be
that you had 180 days to pay on a
medical on a medical debt okay
um and then it couldn't hit your credit
report until it hits 181 days now
in beginning of 2023 January 1st now you
will have 365 days to start making some
type of payment agreement or start
paying on it so it goes from 180 days
all the way to 365 days so this is going
to be for the debt that is actually that
is actually going to start in 2023 we
don't know 100 certain yet if it's going
to retroactively affect any of the old
debt which I can assume it's not because
if it's been on your credit report for
more than a year or two years I don't
think they're going to retroactively
change that I could be wrong
but in order for them to change that it
would be much harder than people
anticipate because they're going to go
into everybody's credit reports and
figure out how to do that that's not
going to be easy so let's say
hypothetically you had a medical
collection in 2020 2021 2022 right
now it's really important to understand
the rules and regulations here okay
there's something called end cap it
clearly states that a medical collection
okay it can it cannot go to a debt
collector until it hits
181 days at that point it can go to a
debt collector and the debt collector
can slap on your credit report at 181
days that is 181 days from your date of
service not when you got the bill it's
when you when you went to go get
treatment and you saw a doctor or you
went to a hospital it has a 180 days it
cannot go on your credit report okay if
it's before that if it was 179 okay 180
178 you get the gist okay if it does
that is a violation of end cap and they
have to give you 180 days to pay on this
item or start making payments on it okay
it cannot hit your credit report before
that if it does it is a violation of
NCAP so if you have a collection and you
have proof that this item them didn't go
181 days before it got to a a medical
debt collector it's a direct violation
all you have to do is type up a very
simple letter you go find the date of
first service you're not going to tell
them this but you're going to get all
the records together for yourself okay
you're going to have those ready locked
and loaded now you're going to send a
very simple letter to the bureaus that
are reporting this collection item and
you're going to State this is a direct
violation of NCAP and isn't Nancy
seasoned cat a is an apple P's and Paul
okay this is a direct violation of NCAP
this item has has gone on my credit
report before 181 days I want it deleted
immediately for my credit report
send it out certified mail now and then
you wait 30 days or we say 35 because
you know five days from mailing okay at
least five days because it takes way
longer than that so that's how you
handle that situation
and the credit bureau should delete it
and then you need to reach out to the
actual hospital and tell them Yo listen
you violated my rights okay one I didn't
receive any notice about this bill
that's also a violation of the no
surprises act okay that went to play in
2022. if you haven't already hit that
subscribe button that way you always
here anytime that we drop new content no
I'm not kidding like hit the button hit
the button okay subscribe that way you
hear every time I drop new content
you're always going to hear about it
you're gonna see all of our new videos
when they drop make sure to share this
to all your friends and family this is
really important information about
medical collections because it affects
millions of Americans cannot stress that
enough okay and if you haven't okay make
sure to comment drop some emojis in the
comments section you know ask me or tell
me about some type of topics you want to
talk about because this is all about you
I'm doing this for you you know to help
as many people as we possibly can out
there so the more content that you guys
can talk to talk to me about in the
comments that you want to hear about I'm
going to make videos out of it it takes
me a minute but I'm writing them all
down I got a nice list from all of my
subscribers that are awesome out there
that are commenting on the videos okay
so make sure that you comment and you
tell me about specific topics that you
want me to talk about now if you did not
know and you're trying to work on your
credit we are a full service credit
management company okay we have created
the most advanced DIY program in the
industry the DIY program dispute like a
pro okay I created this to simplify it
for all Americans so that anybody can
work on their credit this is a very low
cost program at fifty dollars a month
okay we were the first people that
created this to make credit attainable
for everybody because credit's a very
vital part in everyone's life so anybody
can work on their credit we cut out all
the nonsense you don't have to read
modules you don't have to learn anything
we create your custom Metro 2 letters we
email them to you you print them you
send them out certified mail and you're
done it's just that simple okay dispute
like a pro for fifty dollars a month we
are we are full service where we offer
full service Metro to programs where we
do everything for you we also have
another program that is the
pre-litigation program that is designed
to sue okay so we work with a bunch of
legal teams across the United States
that can help our clients go after those
lawsuits that are that are are sitting
on their credit reports that are hurting
their credit so you have different
options we also do have an identity
theft program this is for people that
have real serious identity theft issues
because this is a huge problem in the
United States a lot of people don't talk
about
so we created that program also for that
so you can always find my trusted links
in the description all the time
sometimes if you ask for them I will
drop them in the comments but you'll see
that it is a link directly from us okay
and please never forget last part's the
most important please remember this is
not legal advice this is for educational
purposes only okay if you haven't
already hit that Bell notification that
way you find out every time we go live
every time we drop new content you're
gonna hear about it first now whenever
you send out any letters whatever you're
disputing to the credit bureaus do not
dispute through Credit Karma okay rule
number one okay because you're waving
your rights to any class action
um litigation or class action lawsuits
When you dispute through Credit Karma
select these transient TransUnion issues
um issues with credit bureaus where
there's going to be class action guess
what if you dispute it through there you
just wave your rights so don't do that
also all always send certified mail so
you have proof that you sent it and they
received it okay that's very important
always send certified mail so now if you
don't want to send a letter you could
also call the credit bureaus okay a lot
of people skip this process it can
potentially expedite it okay by picking
up the phone I'm gonna put the numbers
up there you can call all three credit
bureaus ask to speak to the fraud
department okay do not do this
um after 4 pm you want to do it before 4
pm because after that they're crazy busy
you don't want to do it right when they
open because everyone's waiting to call
the credit bureaus okay so do it kind of
in the middle of the day when they're
not at their peak time okay A lot of
times sometimes they will turn off the
phones so no phone calls can come
through because you're being inundated
with phone calls so call the credit
bureaus ask to speak to somebody in the
fraud department once you get a hold of
them be super nice if you learn anything
in my videos be super nice to whoever
you're going to talk to okay because the
nicer you are the better you're gonna
have the best results possible when you
talk to that person and then tell them
what you're you're gonna say in the
letter this is a violation of end cap
you know this was put on my credit
report before 180 days it needs to be
deleted immediately please please help
me with this and they'll help you walk
you through it okay that's going to be
the easiest step that you can go but
hold on wait don't worry there's more
all right so this is the most important
last final part okay starting in the
first half of 2023 I'm gonna put it up
on the screen right there okay so you
guys can all see it Experian and Equifax
and Transunion will no longer report
medical debt collections that are under
500 we've seen a lot of these across all
types of credit reports because it's
really common you had to co-pay for 50
60 120 anything less than 500 is not
allowed to report on your credit report
so if you find those on your credit
reports you need to go after them call
the credit bureaus let them know what
those numbers that I put up earlier I'll
put the number up again right now so you
can call them and tell them yo this is
less than 500 get off my credit report
you guys made this big announcement get
it off my credit report it's hurting my
credit report okay
or if you do that send it certified mail
because we want proof that we did this
right now if you call the credit bureaus
I'm Gonna Leave You with this last tip
okay if you call the credit bureaus
every time that you talk to them they
say this call may be may be recorded for
quality assurance they are giving you
permission to record that call without
them knowing that you're recording the
call if you get them on a recorded call
and they say they're going to delete it
and they don't delete it guess what they
have a problem if they tell you they're
not going to delete it and they give you
the runaround and they cause a big
problem for you guess what that's a
lawsuit okay because clearly they made
this huge announcement it's not supposed
to report so guess what don't report on
my credit report get it off of there
okay so you can call them if you do send
it by mail send it certified mail if
they do not delete it then you take that
letter
and the certification that you sent and
send it to the cfpb and also file a
complaint with the FTC so file complaint
with the cfpb and the FTC that they have
not deleted this off your credit report
and you want it done immediately now if
it doesn't happen then then you need to
contact my company and we can try to see
if we can get the legal team involved to
try to go after to sue the credit
bureaus to get this off of your credit
report okay and always remember
subscribe to increase your credit score
[Music]
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