Ask Me Help Desk - Old Debt on Credit Score?

To make a long story short-

Last year, I had to get a lot of tests done because my doctor claimed I might have cancer. At the time, I assumed my parents insurance (I was covered under them) would cover it. I know I should've looked into it more, but when you think you might have cancer, nothing really matters but finding out.

Well, in March I started getting calls from a collection agency saying I owed money to Quest Diagnostic for the tests they did because they don't accept my insurance. I demanded a letter, and I got one in July saying I owed $500. I called Quest and they say I owe $800 (?? ). I told Quest I NEEDED to see- in writing- what I owed and a month on, I'm still waiting.

I'm about to forget about ever paying them; my parents told me not to worry about it either. I pay all my bills on time and my credit score is around a 720. But, how badly can $800 in old debt mess with my credit score? I don't want to have problems buying a car or buying a house, say, 9 or 10 years from now (I'm only 23) because of something as ridiculous as this.

Thanks!

Quote:

Originally Posted by Jen1985

To make a long story short-

Last year, I had to get a lot of tests done because my doctor claimed I might have cancer. At the time, I assumed my parents insurance (I was covered under them) would cover it. I know I should've looked into it more, but when you think you might have cancer, nothing really matters but finding out.

Well, in March I started getting calls from a collection agency saying I owed money to Quest Diagnostic for the tests they did because they don't accept my insurance. I demanded a letter, and I got one in July saying I owed $500. I called Quest and they say I owe $800 (?!?!). I told Quest I NEEDED to see- in writing- what I owed and a month on, I'm still waiting.

I'm about to forget about ever paying them; my parents told me not to worry about it either. I pay all my bills on time and my credit score is around a 720. But, how badly can $800 in old debt mess with my credit score? I don't want to have problems buying a car or buying a house, say, 9 or 10 years from now (I'm only 23) because of something as ridiculous as this.

Thanks!

Quite frankly this isn't ridiculous. They provided a service, you took the service, you owe them. If you don't pay they'll get a Judgment and take whatever means are necessary to collect it - lien against your bank account, file a garnishment against your wages.

The Judgment will stay on your credit report for about 7 years (give or take) and, yes, it will reduce your credit score.

It's difficult to believe that your parents also see no need to pay Quest.

The other option is contacting the insurance company. Some companies will pay a portion, some will take a backdated referral (if that is the problem). I would find out the specific reasons for the denial.

And if the matter has been turned over and fees and costs added, the amount you will be sued for will only keep increasing.

We WOULD pay if they ever sent us what I owed. They haven't. I was the one who had to call THEM to see what I owed. I'm not just going to hand over money without a written documentation/or a bill. They haven't provided that.

Quote:

Originally Posted by farmgirlmo

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What often happens here is the medical provider sends samples taken in their office to a lab for testing. So you may have never actually gone to a Qwest facility or personally handed them a sample. If that is the case, then you need to go back to your medical provider and ask them why they used a lab that didn't accept your insurance without your permission. They may be responsible for those charges.

You should not be held responsible if they medical provider goofed and sent the samples to the wrong lab.

Quote:

Originally Posted by ScottGem

What often happens here is the medical provider sends samples taken in their office to a lab for testing. So you may have never actually gone to a Qwest facility or personally handed them a sample. If that is the case, then you need to go back to your medical provider and ask them why they used a lab that didn't accept your insurance without your permission. They may be responsible for those charges.

You should not be held responsible if they medical provider goofed and sent the samples to the wrong lab.

I wondered if the lab checked the insurance info before doing the tests - I've had lab work done, been advised it "may" not be covered because the lab is not a participating provider and had my choice of another lab or signing the slip that I will pay if payment for the service is denied.

If you are responsible for the debt, it will go n your credit and it will affect your credit score. However, it likely won't go to judgment. It is only $800. Not to say that it Won't or CANT... its just unlikely.

As it was suggested, a negotiation is usually the best way. Depending on your current situation and hardship, you can usually work out a deal with the collector to accept a portion of the total amount owed as payment in full, at the same time, arranging a deal to have the record stricken from your credit report once paid.

Of course, as you seem to know already, ALWAYS get it in writing first.

You took the right action by demanding proof first. They are obligated to provide this proof to you. Since this is already in the collection agencies hands, you credit score is not continuously worsening as you wait. It is simply marked as In Collections. Collection agencies can NOT report things like 30-, 60-, 90-day lates, etc.

If you would like/need assistance in creating a settlement offer letter, feel free to ask. I know I, along with a few others here, have had much success in getting settlements from owed debt.

Worst case scenario, this account will be off your credit in less than 9 or 10 years, if that is how long you plan to wait before buying a house or car. However, take action now. You are already 23... don't limit yourself. You never know how your life may change in the next couple years ;)

Quote:

Originally Posted by DrJizzle

if you are responsible for the debt, it will go n your credit and it will affect your credit score. However, it likely wont go to judgment. It is only $800. Not to say that it WONT or CANT... its just unlikely.

This must vary from State to State - I serve papers all the time for debts in the $350 - $500 range (in NYS).

Doesn't seem worthwhile to me but I'm not the creditor.

Quote:

Originally Posted by JudyKayTee

This must vary from State to State - I serve papers all the time for debts in the $350 - $500 range (in NYS).

Doesn't seem worthwhile to me but I'm not the creditor.

Really? That is interesting. I work on the other side of things as you (debt settlement industry ;)) SO I see this not happening quite a lot... although, I have seen them happen for such low amounts.

Do you do any sort of background checks (for known employment, bank accounts or property) before serving? Or is it just standard to serve on anything/everything over X amount of days?

(would love to pick your brain sometime :D )

Quote:

Originally Posted by DrJizzle

Really? That is interesting. I work on the other side of things as you (debt settlement industry ;)) SO i see this not happening quite a lot... although, I have seen them happen for such low amounts.

Do you do any sort of background checks (for known employment, bank accounts or property) before serving? Or is it just standard to serve on anything/everything over X amount of days?

(would love to pick your brain sometime :D )

I owe a process service company - I have no input on the who/how/why of the people being served.

The Attorney hands me the papers, they get served. I have no idea what the creditors do by means of background checks. Occasionally I am asked to run a background (I'm a liability investigator) on a debtor but those are few and far between and for large amounts, looking for assets.