My question involves collection proceedings in the State of: [prefer not to provide full details]
I have excellent credit and no late payments or collections listed on my credit report going back 7+ years. However, within days of applying for a mortgage loan, I received two letters from a collection agency seeking payment, and a reduced "settlement" of charges, for alleged medical debts incurred in 2008 in a state in which I previously resided but moved away from permanently that same year. Presumably, I can only assume these charges ended up associated with me due to insurance not paying in full for medical costs, but I never received bills for these alleged charges nor was I notified (until now) that my accounts were sent to collections. This may be due to having moved out of state and relocated several times since.
Importantly, my credit is clean; and although I was apparently turned over to collections some years ago for these alleged charges, these accounts never appeared on my credit report. Nor have I been contacted by collectors before now.
I no longer have records from 2008 so cannot prove that these claims are invalid but believe they are both outside the statute of limitations in the original state where the debt was incurred and in the current state in which I reside. (Max 6 years) They also may be old enough-- over 7 1/2 years--that the collector cannot legally report these accounts to the credit bureaus.
So, where should I go from here? I don't want anything unexpected to happen before closing that could damage my credit and derail closing due to potentially invalid and time-barred medical debts. My action plan thus far is to write a letter disputing the accounts, asking for validation of the original charges, and asking them to prove that these alleged debts fall within the statute of limitations.
Does this sound like a good plan? Any advice would be welcome. I always pay my debts and have 0 negative incidences in the past so am new to situations like this. And I do not want to lose a home loan for "zombie" debts that I was unaware of and may in fact be invalid.
I have excellent credit and no late payments or collections listed on my credit report going back 7+ years. However, within days of applying for a mortgage loan, I received two letters from a collection agency seeking payment, and a reduced "settlement" of charges, for alleged medical debts incurred in 2008 in a state in which I previously resided but moved away from permanently that same year. Presumably, I can only assume these charges ended up associated with me due to insurance not paying in full for medical costs, but I never received bills for these alleged charges nor was I notified (until now) that my accounts were sent to collections. This may be due to having moved out of state and relocated several times since.
Importantly, my credit is clean; and although I was apparently turned over to collections some years ago for these alleged charges, these accounts never appeared on my credit report. Nor have I been contacted by collectors before now.
I no longer have records from 2008 so cannot prove that these claims are invalid but believe they are both outside the statute of limitations in the original state where the debt was incurred and in the current state in which I reside. (Max 6 years) They also may be old enough-- over 7 1/2 years--that the collector cannot legally report these accounts to the credit bureaus.
So, where should I go from here? I don't want anything unexpected to happen before closing that could damage my credit and derail closing due to potentially invalid and time-barred medical debts. My action plan thus far is to write a letter disputing the accounts, asking for validation of the original charges, and asking them to prove that these alleged debts fall within the statute of limitations.
Does this sound like a good plan? Any advice would be welcome. I always pay my debts and have 0 negative incidences in the past so am new to situations like this. And I do not want to lose a home loan for "zombie" debts that I was unaware of and may in fact be invalid.
Disputing Debts: In Escrow and Contacted for Unknown Old Debt
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