I’m asking for a friend who’s in a credit mess. My friend had an emergency 2 years ago and got several hospital bills, which ended up in Medicredit collection. He tried to pay the hospital a few months ago, but the check was sent back, possibly because the debt was sold. He received a letter from Medicredit last year.
I advised him to check his credit reports, and none show derogatory marks. After July 2022, paid medical collection debt is removed from credit reports.
What’s the best approach?
Should he write a “pay to delete” letter to negotiate paying in full in exchange for not reporting the debt?
If the debt isn’t reported and the new policy is in effect, should he just pay the minimum, even though it’s risky? I don’t want to alert them that the debt hasn’t been reported yet.
Your friend is in a tricky situation with Medicredit, but there are ways to handle it. Here’s what you should do:
First, don’t rush to write to Medicredit asking them to erase the debt in exchange for payment since it’s not affecting his credit score right now. Take your time.
The crucial step is to reach out to Medicredit directly. Have your friend give them a call to confirm the debt amount and check if they offer flexible payment plans or a settlement option.
Now, here’s where things get interesting: If Medicredit confirms the debt isn’t showing on the credit report, paying it off might be the best move. A new policy means paying medical collections after July 2022 could remove them from credit reports.
However, if Medicredit isn’t clear or insists on immediate payment, your friend can hold off. The new policy might automatically erase the debt by July. Just be mindful of potential late fees or the debt reappearing on the report later.
Here’s an extra tip: If your friend decides on a payment plan, make sure to get written confirmation of the amount and terms. There are also free resources available to help fix any errors on the credit report if necessary.
The most important thing is for your friend not to ignore the debt. Talking directly with Medicredit will help him figure out the best way to handle the situation.
Dealing with medical debt can be overwhelming, but you can manage it effectively. Verify the debt’s accuracy by requesting written confirmation from the collector. Review your medical bills and insurance statements for errors like duplicate charges or services not received.