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Removing Medical Debt Errors from Credit Reports

Many Texas residents find it difficult to qualify for loans or other forms of credit because their credit reports contain errors. Collection accounts associated with 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.

Experienced 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 bills how 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.

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