medical lab debt / impact on credit report

[aleaf]

Quick one re a debt that's been handed over to a bad debt agency -

While away on holiday in Dec, I received a final notice from a medical lab company. I've just spoken with them, the bill is legit (not covered by Medicare bc I'd had same test twice in one year) and I am happy to pay the $25. Problem is it's already been handed over to a bad debt agency. Setting aside the fact that the 'final' notice was my first and only notice and it came while I was away, grrrrr.....

The nice man on the phone says once I pay, they will contact the agency and the debt will be closed out. He says although it will continue to show on my credit report, it will not impact my credit score
(edited for clarification: he says this is considered medical debt and that is why it will not impact my credit score)..

So, my question - is that accurate? Can I be confident this will not have an impact on my credit card (or mortgage) applications? Do I have any recourse here given the lack of notification?

 

[Dr Ralph]

The nice man on the phone says once I pay, they will contact the agency and the debt will be closed out. He says although it will continue to show on my credit report, it will not impact my credit score.

So, my question - is that accurate? Can I be confident this will not have an impact on my credit card (or mortgage) applications? Do I have any recourse here given the lack of notification?

What they have told you is definitely not correct. It will impact your score and be available to see as an unpaid debt - even if it was eventually paid.

You can contact the credit reporting agency and request a correction to your report be made. But I'm not sure if this will be successful, as it's not actually a correction as you didn't originally pay the debt in the first place.

If it was me, I'd be insisting that the entry be removed before I paid the debt.

 

[aleaf]

Thanks for the input, @Dr Ralph.
I suspected it was not as clear cut as the 'nice man on the phone' told me. It was the 'medical debt is treated differently' - which I suppose is what this lab bill is - that made me wonder.

Any tips about navigating this? I don't feel like I have any leverage here over a $25 debt and didn't seem like 'nice man' was able to have it removed. Do I just escalate until I get to someone who does have the authority?

 

[theblank]

Your credit score ect is meant to be a record of your credit, ie when you borrowed money from a lender. not any tom dick or harry that says you owe them money. I think they would need to go to court, get a judgement, and even then I am not sure if this can be on your credit report.

Have you even looked at your 'credit report' its free.

the debt collecter is bluffing you. and if so, they are breaking the law. Do some research into debt collection law (and the bad habits of debt collectors) and use that as guide to what to do next.

The medical lab has sold the debt to the debt collector, for probably a dollar. The debt collector would probably have only sent 1 letter hoping you will pay and if you didnt they would give up. They are not going to take you to court for $25, it will cost them too much. However since you contacted the debt collector, you have given them hope.

If you want them off your back, you can negotiate a deal with them.

 

[UP4014]

Personally, I'd pay the lab direct, get a receipt of course and use that as evidence there is no issue. $25 and a month over due and paid is worth having an discussion with the credit reporting agency.

 

[aleaf]

Just to close this out - in the end, I just paid the amount and am moving on. As @BAM1748 (plus a mortgage broker I know) said, it's not worth losing sleep over. I track my credit report pretty regularly so will see if/when it shows and what kind of impact it has.
Thanks to all for input.