Are you getting an avalanche of phone calls, or letters from Capio Partners? Have you discovered a Capio Partners collection mark on your credit reports?
If so, you’re in the right place. Capio Partners, LLC is a large, aggressive, third-party debt collector. They were founded in 2008 and are headquartered in Sherman, Texas.
They work exclusively with the healthcare industry. According to their website, they currently work with over 300 hospitals, healthcare systems, physician groups, and ambulance companies.
Our purpose in this article is to share the four consumer steps to dealing with Capio Partners. These four steps will exercise your consumer rights, perform the necessary due diligence, and protect your creditworthiness.
The first item to share is the Fair Debt Collection Practices Act (FDCPA). This is federal legislation passed by Congress with the intention of regulating the debt collection industry.
In short, it says debt collectors are required to be honest, up-front, and straight-forward. It also says they’re supposed to treat you with a modicum of respect and dignity. It says much more, and it’s worth reviewing in detail at your convenience.
Does Paying Off Capio Partners Collections Improve Credit?
The first question folks usually have is does paying off collections improve credit? You’d think so. It’d make sense if it did. As of 2018, no it won’t.
Just paying off collections, and nothing more, will only result in a change of the status of the collection item on your credit report. It’ll be changed to a paid collection.
This is still a negative item, that’s very likely going to lower your credit score. According to Anthony Sprauve, a spokesman for FICO, collections on your credit report can damage and drag your credit score down by as much as 100 points.
Listen, the key to get your credit score up is to remove this collection item entirely from your credit reports. Millions of collections are removed from consumer’s credit reports, every single year.
In full disclosure, for some folks, they may discover after following the four tips in this article, and first performing the necessary due diligence that it’s in their credit scores best interest to pay collections. In some cases, this can be the easiest path to a clear credit history.
Capio Partners Collection Methods
In addition to those endless phone calls, and letters, Capio Partners is also going to report negative information on your credit reports. Further, it’s likely they’ll try and inflate your total balance.
They can legally charge you high-interest fees, and even collection fees. And this can be quite significant amounts. If they’re unable to collect payment, they have two options.
First, they can sell the rights to your account to yet another collection agency. This new collection agency, of course, will begin calling you, sending letters, and they’ll report even more negative information on your credit reports.
Alternatively, they can sue. As in they can file a civil lawsuit against you. The goal is to win a judgement, because then they’ve really got you by the short and curlies.
Judgements can result in wage garnishment, liens being placed against you and or your property, and even asset seizure. For full details, check out your local legislation, because every state has unique laws.
Worst of all, getting smacked with a judgement on credit report files will absolutely annihilate your credit score, and virtually overnight. Please, don’t just ignore Capio Partners with the wishful, false belief they’ll just disappear like a fart on a windy day.
Capio Partners, LLC
2222 Texoma Pkwy Suite #150
Sherman, TX 75090
Phone number: 1-903-892-7400
4 Consumer Steps For Capio Collections
1. Request Debt Validation
The very first step for all consumers, dealing with medical collections is to first request debt validation. This is your consumer right, granted by the FDCPA. It’s most effective to make this request in writing, and send it using certified mail, with return receipt requested.
This way you’ll have evidence you made your request, and they received it. Essentially, when we request debt validation we’re saying Capio Partners you first prove this is truly my debt, and then we may be able to talk about payment.
You see, they’re required to respond by providing you with the evidence, documents, and paperwork that does, in fact, prove this is your debt. This paperwork will show all the details about the account such as the original healthcare provider, dates of account activity, total balance, etc.
If they fail to validate your account, then in accordance with the FDCPA, you’re no longer legally responsible for payment. Moreover, they’re supposed to contact all three credit bureaus to have them remove collections from credit report files, regarding this account.
2. Age of Account
If your account is validated, our next step is to review this paperwork in detail. We’re looking for your dates of account activity, because contrary to popular belief, you’re not legally responsible for payment forever.
The statute of limitations is state law, and this legislation says exactly how long you are legally responsible for repayment. This time-window does vary by state, so for full details, check out your local legislation.
Generally, this time-window is seven years from the first date of delinquency. Once this time-window runs out and expires, so does your legal obligation. As in this debt is legally forgiven, when the statute of limitations expires.
This time-window applies to most types of consumer debt including medical bill collections, credit cards, retail, utilities, telecommunications, charge off accounts, and so many more. The few exceptions are federal defaulted student loans, and federal income tax.
Beware. Yes, beware debt collectors are notorious for re-aging consumer accounts. Often, this is done illegally, and for the obvious purpose of continuing to attempt to collect payment.
3. Negotiate a Settlement Agreement
Now, we need to discuss how to negotiate medical bills in collections, assuming your account is validated and within the legal time-window. There’s two parts here, and it’s best to get this agreement in writing.
First, we want to negotiate to settle and pay off collections for just a fraction of the total balance. Frequently, you’ll be able to negotiate to settle and pay as little as 15% up to about 45% of the total balance.
For example, with a $1,500 debt, you may be able to settle for just 30% or $450. This is standard operating procedure, and they’ll be thrilled to accept a settlement for less.
This second part of your agreement is mission critical. In exchange for our payment, we must get Capio Partners to agree they’ll stop reporting our account information to all three credit bureaus.
Otherwise, we’re going to get stuck with that paid collection on our credit reports. And that’s going to damage and drag our credit score down.
Pay For Delete
We need to take a moment, and dispel a strangely popular internet myth of dealing with debt collectors by using a pay for delete approach. If you’re unfamiliar, this is where we demand Capio Partners first delete the collection item from our credit reports, and then we’ll make payment.
It sounds great. And it’d be awesome if this is how the debt collection industry worked. But Capio Partners, and every collection agency won’t ever agree to this proposal, for many reasons.
It’s more likely we’ll see PETA opening a butcher shop on every American street corner. Instead, we encourage you to simply get Capio Partners to agree to stop reporting your account information, in exchange for your payment. This is an agreement they will make, even if reluctantly.
4. How To Remove Medical Collections From Credit Report
This final step we’re talking about how to remove medical collections from credit report files, because as we now know this item is hurting our credit score. To do this, we’re going to need to exercise more of your consumer rights.
This time, those granted by the Fair Credit Reporting Act (FCRA). This federal legislation is what enables us to dispute and challenge any item on our credit reports, so long as we believe it’s incorrect, misleading, or made in error.
We’re going to dispute the Capio Partners collection item. If this mark is on all three of your credit reports with Equifax, Experian, and TransUnion we’re going to have to file three separate credit report disputes. One credit dispute with each credit bureau.
Once the credit bureaus get our dispute, they first get to deem it valid or frivolous. This is another conversation for another time and place, so make sure to sign up for our free newsletter and join our congregation, for more credit score help with Dan Willis.
Once the credit bureaus find our dispute valid, they’re required to investigate the item. They’ll call it a re-investigation. Nevertheless, during this investigation, they’ll contact Capio Partners and request verification of the collection account.
As per our settlement agreement, directly with Capio Partners, they won’t verify the account during the credit bureaus investigation. This is the second part of our settlement agreement.
As a result, and in compliance with the FCRA, this means the credit bureaus must remove the collection item from our credit reports. Every single one of those marks on your credit reports, must be verifiable.
This is how to remove medical bills from credit report files, and without just sitting on your hands for seven long, expensive, and embarrassing years. And you’re doing it legally, by exercising your rights as a consumer.
Look, it’s far from easy dealing with debt collectors or Capio Partners. And it sure isn’t easy trying to live in our brave new world with medical bills on credit report files, because this is causing you to have less-than-perfect credit.
Many folks feel as if they’re living in ancient biblical times, and they’re David going into battle with Goliath. And you’re telling me all I get is this lousy slingshot!
At the end of the day, your credit score is much like your Grade Point Average (GPA) in glory school days bygone. It doesn’t matter if you’re acing all your courses, if you’re failing underwater basket weaving, because this negative mark is going to decimate your overall GPA.
This is also true of your credit score. So if you’re working to improve your credit score, it’s essential we take action to clean up credit report dings, blemishes, and remove any negative items.
We encourage our members to consider professional, legal, and legitimate credit repair companies to help. Because the good news is in 2016 alone, over 9 million negative items were removed from consumer’s credit reports.
One of the best firms is The Credit Pros. They’ve helped their client’s successfully remove collections, medical bills, late payments, charge offs, judgements, liens, and so many more negative credit report items.
Get a free credit consultation with a certified FICO professional by calling toll-free 1-877-418-7596. And for more tips, techniques, and strategies about how to better your credit score with Dan Willis, sign up for our free newsletter and join our congregation.
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