Understanding Medicredit: A Guide for Consumers

Medicredit is a name that strikes fear in the hearts of many consumers. As one of the largest medical debt collection agencies in the country Medicredit has developed a reputation for aggressive and questionable collection practices. However, it’s important for consumers to understand their rights and how to best deal with Medicredit if they receive a collection notice.

In this comprehensive guide, we’ll provide an overview of Medicredit, explain common complaints against the company, outline your rights as a consumer and offer tips for responding to and removing Medicredit collections from your credit report.

Who is Medicredit?

Medicredit Inc also known as Medicredit Corp, is a debt collection agency that specializes in collecting unpaid medical bills on behalf of healthcare providers and facilities. Headquartered in Earth City Missouri, Medicredit has been in business for over 4 decades and has over 15 call centers across the United States.

If you see Medicredit listed on your credit report, it likely means you have an outstanding medical bill that was referred to Medicredit for collection by the original provider. Medicredit works on behalf of doctors’ offices, hospitals, labs, and other medical facilities to recover debts.

How Does Medicredit Collect Debts?

According to Medicredit’s profile with the Better Business Bureau, the company does not actually purchase medical debts. Instead, it acts as a third-party collection agent on behalf of healthcare providers to collect on unpaid bills.

The typical process is:

• You receive medical treatment and owe money to the provider

• You fail to pay the medical bill within the allocated timeframe

• The provider refers your unpaid bill to Medicredit for collections

• Medicredit sends collection letters and makes phone calls demanding payment

• If you don’t respond, Medicredit reports the debt to credit bureaus

Common Complaints Against Medicredit

Medicredit is no stranger to complaints and controversies. As of June 2022, the Better Business Bureau profile for Medicredit shows over 200 closed complaints within the last 3 years.

Here are some of the most common grievances consumers have with Medicredit’s tactics:

• Incorrect information on credit reports – One of the top issues is Medicredit reporting debts that are inaccurate or do not belong to the consumer.

• No validation of debt – Many people claim Medicredit fails to provide documentation validating that the consumer actually owes the debt.

• Harassing collection tactics – Aggressive and abusive phone calls are a prime complaint against Medicredit collectors.

• Failure to verify identity– In some cases, Medicredit pursues the wrong person for a debt or mixes up consumer accounts.

• Ignoring cease-and-desist letters – Some consumers say Medicredit continued collection efforts even after receiving cease-and-desist letters.

Your Rights Under the FDCPA

If you are contacted by Medicredit about a medical debt, you have rights as a consumer under the Fair Debt Collection Practices Act (FDCPA). Here are some key rights to be aware of:

• Debt collectors like Medicredit cannot harass, oppress, or abuse you when trying to collect. This includes excessive phone calls or using threats.

• They cannot lie or misrepresent the amount you owe. They must provide proof if you request debt validation.

• They cannot threaten dire consequences like arrest or lawsuits if those actions are not legitimate options.

• They cannot contact you at unreasonable hours outside of 8am-9pm in your timezone.

• They must honor written cease-and-desist requests and stop contacting you.

• They cannot discuss your debt with third parties except to obtain location info or confirm employment.

Tips for Dealing With Medicredit

If you receive a collection notice from Medicredit, stay calm but take it seriously. Here are some tips to protect yourself:

• Request debt validation in writing – Never pay a debt without first requesting Medicredit provide written validation including your account number, the amount owed, the original creditor info, and proof you are responsible.

• Confirm your identity – Double check that Medicredit has contacted the right person. Mistaken identity happens. Don’t pay for someone else’s debt.

• Negotiate – If the debt is validated, try negotiating with Medicredit. Many medical debts can be reduced substantially. Get any settlement offer in writing before paying.

• Send a cease-and-desist letter – If you are receiving harassment from Medicredit collectors, send a cease-and-desist letter via certified mail demanding they stop contacting you.

• Dispute with credit bureaus – If Medicredit won’t work with you, dispute the collection account with Equifax, Experian, and TransUnion to try removing it from your credit reports.

Removing Medicredit From Your Credit Report

Having a Medicredit collection on your credit reports can seriously damage your credit score. Here are some tips for removing it:

• Negotiate pay-for-delete – Offer to pay the debt in exchange for Medicredit deleting the account from your credit reports. Get this agreement in writing first.

• Challenge inaccuracies – If the debt info is wrong or you have proof it’s not yours, file disputes with the credit bureaus. Provide evidence.

• Wait it out – Collections automatically fall off your credit reports after 7 years. An unpaid Medicredit account won’t hurt your credit forever.

• Seeking professional help – Work with a reputable credit repair company that specializes in removing collections. This is often the most effective path to take.

Don’t Let Medicredit Intimidate You

Dealing with Medicredit can be frustrating and stressful. But knowledge is power. Understand your rights, take the appropriate actions, and don’t let aggressive collections tactics intimidate you. With the right moves, you can protect your finances and work towards removing Medicredit from your credit history for good.