If you have recently been contacted by Medicredit or a collection entry has shown up on your credit report with the creditor listed as “Medicredit”, this article will explain how to not only deal with this collection agency, but also how to remove Medicredit from your credit report.
Is Medicredit A Collection Agency?
Medicredit Corporation is a collection agency owned by The Outsource Group.
Medicredit, like most collection agencies, generally purchases debts from original creditors and then begins the collection process in order to turn a profit.
As a result of this business practice, many times collection agencies have incomplete or inaccurate information in regard to the debt. Therefore, it’s possible that the debt isn’t even yours.
How To Remove Medicredit From Your Credit Report
Communicate via Writing
The first thing you should do is write Medicredit a letter requesting that all future communication be done via mail. Too many people get into trouble by dealing with collection agencies over the phone.
Collectors are notorious for saying one thing over the phone and then doing the exact opposite.
It’s important that you have everything in writing when dealing with any collection agency. This way they know they can’t lie and are more likely to operate in an honest way.
Write a Debt Validation Letter
Next, write Medicredit a “debt validation letter”. A debt validation letter is basically a letter that requests that they verify that the debt is actually yours.
This is a right you have by law, and they will have 30 days to respond with documentation that shows the debt is yours. You can check out my sample debt validation letter template to get started.
One thing to keep in mind is that you only have 30 days from the time they first contact you to send a debt validation letter to the collector. If the 30 days has passed, your debt validation letter might go unanswered.
Negotiate a Payoff
If Medicredit was able to validate that the debt is yours and the information they have matches your records (and your credit report), your next step should be to negotiate a payoff.
Of course, for this to work you’ll need to offer to pay them the debt if they agree to remove the collection entry from your credit report. You can start off by offering 50% of what they are asking and go from there.
An important thing to keep in mind when negotiating is to get everything in writing. You can negotiate over the phone or email if you’d like, but before you pay, make sure the agreement is in writing.
Once you have the agreement in writing, write them a check for the settlement, and check back in 30 days to make sure that the entry was removed from your credit report. Never allow them access to your bank account.
If after 30 days, the negative entry is still on your credit report, write them another letter that demands they remove the collection from your credit report.