Located in the state of WV.

My fiancé recently had knee surgery for an on-the-job injury that occurred not too long ago. He now has an entry on his credit report for the initial Dr. visit, but it has been paid by worker's compensation to the original creditor. Now, in all honesty, it was paid after it was turned over to the collections agency; however, it was paid to the original creditor, so I understand the confusion. The problem is that:

1. When the visit initially took place, the original creditor was aware that this was to be billed to Worker's Compensation.

2. The bill HAS BEEN PAID IN FULL to the original creditor.

We are now stuck in limbo because the original creditor says that it was "paid too late and was already sent to collections" and the credit agency says that they cannot remove the bill until the original creditor informs them that it has been paid. I hold, IN MY HAND, the proof that the bill was paid. I do not know what to do because each agency says to have the other one contact them, and neither seem to want to, or be willing to contact each other. In the mean time, his credit report has taken an unwarranted hit.

As you can see, we have two issues - it was PAID, and, this was never his responsibility to begin with. It was clear to the original creditor, where he received the medical attention, that it was a Worker's Compensation claim. Am I clear in my understanding of the Worker's Compensation Laws that he should never have been held responsible from the beginning? And, legally, he cannot be held responsible? Not to mention, it was paid.

The collection agency says that the account was sold to them before the debt was paid, and they want their money. Yet, the original creditor was paid, and obviously, they are keeping it. Where should I go from here? Dispute the claim? That seems the obvious solution; however, after dealing with a few issues of my own, I doubt that it would be that simple. When credit agencies are involved, it never is.

Please help us! We don't want to hire a lawyer to dispute a $150 credit item; however, we don't want to pay $150 for a bill that has already been paid, AND wasn't his responsibility to begin with. Much thanks for any advice helping us to settle this.

Was the WC claim approved at the time he saw the initial physician? I realize that a lot of people go to the Doctor, claim it's an on the job injury, it is not.

He has the ability to add his explanation to his credit report - I would do that.

Is it listed as paid late or not paid on the credit report?

I carried an entry for 7 years concerning a medical bill. My health insurance for whatever reason didn't pay it. Every month I got billed, every month I called and then mailed the bill to my health insurance carrier. They paid it after a year. Then I pulled my credit report and it was listed as "late pay, sent to collections."

I added my explanation (it was always covered by insurance) and that was the end of it. It was an annoyance and upset but I could see no other way around it.

... - it was PAID, and, this was never his responsibility to begin with. It was clear to the original creditor, where he received the medical attention, that it was a Worker's Compensation claim. Am I clear in my understanding of the Worker's Compensation Laws that he should never have been held responsible from the beginning? And, legally, he cannot be held responsible? Not to mention, it was paid. ...

No, that would not be correct.

When he went to the doctor, chances are he signed a document agreeing that, insurance or not, he would be responsible. The doctor doesn't care who pays the bill, just wants to be paid. The doctor doesn't need to worry whether a WC claim will be honored. And the service was rendered to your fiancé, not his employer.

If the employer or the WC carrier signed something agreeing to be responsible, they and your fiancé would be jointly responsible.

Thank you both for your reply. He indeed was approved before this visit. We waited over a year for him to get approved, and had to go back to this provider, under WC rules, so that he could get referred to a qualified surgeon. When he first hurt his knee he was on the job, and he thought that it was a sprain or something small. It was quite painful, but he continued to work out his day. He had no idea that it was a torn meniscus, and therefore would require surgery. After this provider confirmed the problem, and it was indeed more serious then either or us thought, they advised him to begin the process of a WC claim because after the surgery, he would require a few weeks off.

At the time the services were rendered, he did produce his identification card that was provided by WC. The paper work clearly stated that he was covered, and that they were the responsible party. The bill was billed to them, not us. Yet, after it was not paid in a timely manner, it ended up on his credit report. If this were years old, and still remained unpaid, then I could understand their reasoning to seek compensation any way they could. The fact is, it was paid even before the 180 days were up in which most creditors wait to forward it on to a collection agency. (That is my understanding anyway.)

Judy, the main problem is that it is listed as unpaid. The original creditor was paid in full, yet the collection agency states that they have not received notification of this, and neither will contact the other to confirm. We are not even as concerned that the bill is on his credit, but the fact that it is listed as unpaid. The longer it remains as unpaid, the worse it looks.

This is just beyond wrong, in my opinion. I don't understand how this is possible. It is very frustrating, to say the least. They have their money, it was approved, and no one will take the initiative to take care of it. The date of service was 11/23/2011 and this was paid 1/20/2011. Both parties have had ample time to update their records, and report to the credit bureaus. When we spoke to them a month ago, both parties were supposed to "reflect this on their records."

We just found this problem when we pulled both of our credit reports earlier this month in hopes of buying a home. It is no wonder that credit bureaus and medical providers stay in business. It seems they want paid twice, and sometimes get it in order to rectify a victims credit report. My friend went through the same situation and ended up paying the money just to get it correctly recorded on their credit report. It seems this should be illegal, or harassment at the very least.

Yikes! I'll go back to where I started. I think you need to file an expanation with the credit bureaus. I'd use your wording here but shorten it. The only legal case against anyone that I can see would be a claim of malice against you and I don't know if that's true, why or if you could prove it.

Unfortunately - and I mean this sincerely - STUPIDITY is not actionable in most cases and, boy, are these people stupid!

Do you have proof of the paid bill that YOU could send the collection agency and credit reporting agencies?

I don't have any legal advice, but we went through something similar. It went on for years.

We had an overdue bill from my parents estate. When they died I was executor and paid out all the bills, or so I thought.

Three years later I get a notice saying that their cell phone wasn't paid in full. It was $230 left owing.

So I sent a check. Sadly it had already gone to collections. I sent the check to the company, not the collection agency, so it still showed owing as the company that was sold the debt didn't get paid, even though the bill itself was paid.

Well, it just got settled last month, and the only reason it did was because we got a new car. When we applied for financing that bill came up, it showed as unpaid. Well, we told the finance officer that we had paid, over 7 years ago. So he called and found out the status. He set it straight. We got lucky though, this guy went above and beyond to get us financing at a good rate, and this was just one of the many things he did for us.

I really don't know what to say, other then, don't just think it will rectify itself. Like Judy said, these people are stupid, and they're really hoping that you'll just pay twice in order to get it off your credit report.

I hope you get it all sorted out. Good luck.

Just a side note. You've gotten advice from the top legal experts on this site. When I have a legal question (which thankfully isn't often) I go to them first. They really do know what they're talking about. :)

Here is a great site (sponsored by the Federal Government) which even gives a sample letter for you to use. Explains the process very thoroughly. How to Dispute Credit Report Errors (http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre21.shtm)

Please come back and let us know how this works out for you.

Judy, I most certainly will let you know. Your advice has been very helpful.

I do have proof that the bill was paid. I have it from WC, and tomorrow I'm going to call the original creditor and attempt to proof from them as well. Surely, I would hope that they could at least manage that short amount of time. (Rolls eyes)

Unfortunately, until this is recorded as "paid" on his credit report, we can not get a loan. While I think it would be simpler to just pay it, it is about the principal of the matter now. I hope some savvy person out there makes an example of issues like this someday with a new law regarding what credit collectors can do with these situations, and how long after the fact that it has been proved to them that it is being reported incorrectly that they can take to fix their mistake.

For anyone who cares, and has posted on this thread, or for anyone in the same situation, I would like to report a light at the end of the tunnel. Today I received notice that not only was this account resolved, but it was completely deleted off his credit report. Apparently I was correct in my original understanding that it was never his responsibility. After the dispute was verified, it was completely removed. If anyone should find this in the future:


1. (Most Important) Be sure that your Worker's Compensation claim was approved prior to the visit.
2. Make sure that you have your Worker's Compensation identification card (It looks almost exactly like an insurance card, and they send it to you after approval of the claim).
3. It is best to start after the account was paid in full. More than likely it is a plus if it was paid before the customary 180 days that it takes most companies to forward the account to a collections agency.
4. Get proof from Worker's Compensation and the original creditor that the account was indeed paid in full.
5. Be just as ruthless as they are! If at first you receive notification that the debt was verified through an online dispute, DON'T GIVE UP! Mail the bureaus your proof and identification cards. I can't be certain, but I would bet that the collection agencies hope that you don't do this because you could prove that the debt should not be on the report.
6. Save ALL documentation so that you can refer back to it for the (sometimes) lengthy dispute process. Being informed and prepared is half the battle!


And finally, best of luck to you. :) JudyKayTee provided a very helpful link to a sample letter to use if you need it.

I am DELIGHTED that you got this accomplished and even more pleased that you came back and reported the outcome to us.

JudyKayTee, I did a little happy dance, I must admit. I am SO happy too! What astounded me was that literally days after I mailed in the letter (from the template you posted) with my proof to the credit bureau - poof - it was gone! I don't even think it was a week. Of course, they may have taken a look at the stack of papers that accompanied it, and just said, "ok, we'll just do it." :) I only expected it to be marked paid, so it was an extra-special surprise. Thank you again for that template!