I was just reading a post on another credit repair Blog where somebody had asked about using Hipaa laws in an attempt to fix their credit.

The post had 23 responses so I suppose it’s a popular topic. Unfortunately, the answer given by the credit repair Blog owner was wrong.

Here was the question..

I have a medical bill that is about 4 months old and the hospital hired a third party debt collector. I sent a letter of validation to the collector and about 3 weeks later the debt collector sent me my medical bill which contained a description of the treatment I received.

Isn’t that a violation of hippa and if so, can’t I sue and have it removed?

Blog Owner Response:
If the hospital gave anybody your medical procedures that is absolutely a violation. I would sue the doctor and demand removal of the trade line from your credit report.

The Correct Answer:
You know I think it’s great when people try to help others out, especially when it’s free help. However, when it comes to finance and credit you better know what you’re talking about because wrong information can have very undesirable side effects when it comes to this stuff.

The truth of the matter is that is perfectly legal. What tipped me off was that he said the hospital “hired” a debt collector. There are two types of debt collectors 1) assigned 2) buyers.

An assigned account is where the debt collector basically works for the original creditor and is paid a fee, or percentage of what they collect.

A purchaser is just that. They purchase the debts and are now the new owners.

In the case of a medical bill, an assigned collector is considered an extension of the hospital (or any original creditor) and they can see your files.

Now, had it been purchased then you may have a violation. A purchaser is not considered an extension and has no need for your procedural files. They only need the pertinent information necessary to collect.

For more information on HIPAA Visit Here