Removing MediCredit Debt Collections

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What To Do About MediCredit Debt Collections

First, it is important to understand that if you have been contacted by MediCredit about an outstanding debt, this is not a “scam”.  MediCredit is one of many major debt collection companies which purchase unpaid medical debt and then attempt to collect these payments from consumers.  The very first thing you should do if you have been contacted by MediCredit is review your credit report.  Annual Credit Report is authorized by federal law to provide a free credit report to consumers every year.  If you see a MediCredit Collection on your report and have already been contacted by MediCredit then you know that this is a very serious matter that needs to be addressed.

MediCredit Debt Collections
MediCredit Debt Collections – Resolving Collections Can Help Your Credit!

How To Handle Debt That Is In Collection

The first thing to do is remain calm and assess the situation.  You should gather all information you can about the source of the debt.  Having a debt in collections on your credit report will have a major negative impact on your credit score.  These should be addressed as quickly as possible.  You should immediately follow up and ask for them to validate the debt in writing if you have been notified by phone or mail by MediCredit.  This is the first step.  Request the validation be completed by mail so that all correspondence is done officially with a paper record.  It is possible that the debt collection is a mistake.  If MediCredit is unable to validate your debt the problem may be solved very easily.  With this said, it is still important to verify that the collections is removed!

It is essential to address this issue right away once you have received validation of the debt and confirmed that the debt collection exists on your report.

Understanding Your Rights – FDCPA

As a side note, if you are feeling harassed or overwhelmed by a debt collection agency it is important to know that you have rights.  The FTC has laid out guidelines in the Fair Debt Collections Practices Act.  It is worth reviewing this information to make sure that you are being treated correctly by any debt collection service.

Negotiating With MediCredit To Resolve Your Debt

One of the biggest mistakes a consumer who has gone in to collection on a debt is failure to negotiate with the company.  It is worth pointing out a little background information on how debt collection companies work.  When medical providers (in this case) issue a bill that goes unpaid they eventually sell this debt to collection services.  The debt is sold at a far lower rate than the actual bill.  This means that the debt collection company purchased your debt for much less than you owed.  This is why there is almost always room for negotiations with a debt collection company.

You will be in a much better position of negotiation if you are able to pay off the debt with a single payment.  Collection companies that need to set up a payment plan with a consumer are far less flexible with negotiations.  To begin, make an offer of a one time payment of about half of the debt you owe.  In all likelihood, the collection service will rebuff this offer and come back with a counter offer.  All of this correspondence should be done by mail or email to ensure your protection.  You can then proceed with the payment once you have reached an agreeable repayment amount and have this in writing.  Consumers should follow up with MediCredit after payment has been made to ensure the debt has been removed.

If you are unable to pay the debt most companies will offer payment options to fit your ability to repay.  Make sure that whatever you agree to is an affordable amount.

Recovering Your Credit After A Debt Collection

When you account goes in to collection you will likely see a fairly significant hit to your credit score.  You need to ensure that the collection has been removed from your credit report after you resolve the debt .  You will need to contact MediCredit immediately to ensure they have removed the collections report if your collection notice is still reflected on your credit report.  Once the debt is removed, consumers should continue following best credit practices and you can expect to see your credit score rise in the following months after your debt has been settled.

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