Many Texas residents find it difficult to qualify for loans or other forms
of credit because their credit reports contain errors. Collection accounts
medical debt sometimes appear on credit reports even when the bills in question have
been paid by an insurance provider, but there are steps that consumers
can take to remove this kind of erroneous information.
Consumers who feel that medical debt may be damaging their credit should
begin by contacting the various credit bureaus to discover what is contained
in their reports. Once errors have been identified, disputes should be
filed with both the credit bureau and the creditor. Communication should
be made by certified mail rather than online forms, and a return receipt
should be requested. If these efforts are ignored by credit bureaus or
creditors, a complaint may be filed with the Consumer Financial Protection Bureau.
If filing a dispute fails to resolve the problem, consumers may initiate
a legal action in small claims court. Collectors will often seek to settle
minor disputes rather than deal with the uncertainty of court proceedings,
but consumers should be prepared to argue their cases if necessary. Consumers
may also wish to contact professional organizations such as the American
Medical Association or consumer organizations such as the Better Business
Bureau. While these organizations are rarely able to remove
credit report errors, creditors may decide to settle a dispute in order to protect their reputations.
Houston bankruptcy attorneys will likely be familiar with the sometimes questionable practices of creditors
and debt collectors. They thus may point out to those with unmanageable
filing for bankruptcy can put at least a temporary halt to collection efforts while perhaps
providing a fresh financial start.
Contact Guzman Law Firm for help with all of your bankruptcy issues.