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).

Outlines

00:00

🚑 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.

05:01

📝 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.

10:02

📞 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.

Keywords

💡Medical Collections

Medical collections refer to debts that result from unpaid medical bills. In the context of the video, they are highlighted as a significant contributor to bad items on credit reports, making up over 70 percent of such entries. The video discusses changes in 2023 regarding how these collections can be reported and their impact on credit scores.

💡Credit Reports

A credit report is a detailed record of an individual's credit history, including loans, credit cards, and payment history. The video emphasizes the importance of credit reports as they are a key factor in determining credit scores and financial health. It discusses how medical collections can negatively affect these reports.

💡Paid Medical Collections

This term refers to medical debts that have been paid off but still appear on credit reports. The video explains that as of 2023, paid medical collections can no longer be reported to credit bureaus, which is a significant change aimed at improving credit scores.

💡Credit Bureaus

Credit bureaus are agencies that collect and maintain consumer credit information. The video mentions that medical collections, especially those under $500, should no longer be reported by Experian, Equifax, and Transunion, which are three major credit bureaus.

💡End Cap

End Cap is a term used in the video to refer to the Fair Debt Collection Practices Act (FDCPA), which protects consumers from abusive, deceptive, and unfair debt collection practices. It is mentioned in relation to the timeline for reporting medical debts to credit bureaus, stating that collections cannot be reported until 181 days have passed since the date of service.

💡No Surprises Act

The No Surprises Act is a U.S. federal law aimed at protecting consumers from unexpected medical bills. The video discusses how this act came into play in 2022, ensuring that consumers are informed about medical bills and have rights if they are reported incorrectly.

💡Debt Collectors

Debt collectors are entities or individuals that attempt to recover payments on debts owed by individuals. The video explains that medical collections cannot be sent to a debt collector until 181 days have passed from the date of service, which is a crucial point for consumers to be aware of.

💡Credit Dispute

A credit dispute is the process of challenging information on a credit report that the consumer believes is inaccurate. The video provides guidance on how to dispute medical collections that appear on credit reports in violation of the rules, such as those reported before the 181-day period.

💡Certified Mail

Certified mail is a service provided by postal services that provides proof of mailing and delivery. The video advises using certified mail when sending disputes to credit bureaus to ensure there is a record of the correspondence, which is important for legal purposes.

💡Credit Karma

Credit Karma is a platform that offers free credit scores and reports. However, the video warns against disputing credit report items through Credit Karma because it may waive consumers' rights to class action lawsuits, which could be detrimental in cases of widespread reporting errors.

💡Class Action Lawsuits

A class action lawsuit is a legal action taken by a group of people who have been wronged in a similar way. The video mentions that disputing through Credit Karma may waive the right to participate in such lawsuits, which could be a loss for consumers if the issue affects many people.

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

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to all your friends and family this is

really important information about

medical collections because it affects

millions of Americans cannot stress that

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sure to comment drop some emojis in the

comments section you know ask me or tell

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talk about because this is all about you

I'm doing this for you you know to help

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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

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