|On Thursday December 11, the Consumer Financial Protection Bureau will be holding a public hearing on Medical Debt Collection.So many of our clients are dealing with medical collections. Because of HIPPA privacy laws, medical providers cannot directly report to your credit file. Instead they will send the debt to collections if it has not been paid within 90 to 180 days. Of course the collection agency’s primary method of collection is to report it to your credit report. We have seen many cases where the provider never even billed the insurance.
The collection agency doesn’t really care about any of that – they are just there to collect. The next generation FICO 9 algorithm is supposed to make paid medical collections neutral to score, but adoption of FICO 9 is at least a year away. Current FICO algorithms do not differentiate between medical and non-medical collections and count a paid collection just as heavily as an unpaid collection.
The CFPB is responsive to public input and has demonstrated a true interest in protecting consumers. The hearing will feature remarks from Director Richard Cordray, as well as testimony from consumer groups, industry representatives, and members of the public.
When: Thursday, December 11, 2014 at 11:00 am CST
We deal with medical collections every day and can help you. Please give us a call any time for a free consultation.