First the back story: About a month ago we found out that a medical billing company had sent a bill of collection to a collection company . . . basically they said we hadn't paid a bill and it was sent to collections. This bill was from May of 2008 when AJ had a minor surgery. We never knew this debt existed, never received a bill or a notice or anything until it showed up on AJ's credit report. It's mere existence dropped his credit score by 113 points. The bill that was sent to collections was for . . . . drum roll please. . . . .$37.52. Believe me, if I knew I owed the money I would have paid the stinkin' bill a long time ago.
So AJ went from being able to get a great loan at a great rate to being a "risk". Oh and I am also a "risk" by association, apparently. Because some doctors office screwed up their billing and NEVER BILLED US!!! But we called the creditors up (before they bothered to contact us and let us know we even HAD a debt to pay) and paid the money. AJ had to sweet talk them into pushing the payment through while declaring that it was an "error" to have impacted his credit. And hopefully it would come off of his credit in time for our home loan to go through. This little error could cost us approximately $150 - $200 a month in extra interest payments. Is this making sense? Sometimes I am terrible at explaining things clearly.
Anyway. Today we found out that his credit score was repaired in time and we are able to get a great interest rate. Yippeee! Our realtor said that a certain video rental chain is famous for ruining people's credit for the most minor of bills. He said that a good portion of the clients that have their credit ruined by this store never knew they had an outstanding debt. It seems to me that should be illegal. Shouldn't it be mandatory to notify a person before destroying their credit? You know. . . to give them the chance to pay the debt first?
But this leads me to another point. Once again I have been reminded that a doctor is only worth seeing if their support staff is competent. We learned this lesson when AJ had his back surgery in 2005. A doctor who has a good billing department is worth driving several hours to see. We let our guard down and figured that because this was a minor operation it wasn't worth driving a great distance for. . . and once again the medical profession in C-bad let us down. So much for giving them a second chance. Thank goodness we won't be tempted for a third try in the future.
4 days ago
Dang C-bad hospital billing department was the WORST aspect of our 2004 accident...so many phone calls, visits, rants. Ridiculous! If educated, English speaking, vigilant and persistent people have trouble negotiating their system, what kind of rip off are they pulling on everyone else? Glad your situation was sorted out in time for the home loan. Yeesh.
ReplyDeleteIffy has a medical bill/credit report issue too from c-bad. He went to see a doctor because he hurt his back ON THE JOB! GUMO was supposed to pay it, they never did in time, now it's on his credit history. Hopefully though by the time we get around to buying a house it will be gone. It's already been 4 and a half years, only 2 and a half more to go!
ReplyDeleteI HATE the fact that if you want to monitor your credit more than once a year you have to pay for the honor. It seems like bs that you should have to pay for information about yourself. On principle I do not agree, but yet I do it anyways, because the 12 bucks a month will prove to be so worth it if ever my identity is stolen.
Glad that all worked out well for you.