What is a Letter of Explanation for Medical Collections?

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How to Write a Letter of Explanation for Medical Collections

If you're trying to secure a loan, you may need or other debts. Those debts are hurting your credit score and, if not adequately explained, could hinder your ability to get the money you need to buy a house or start a business.

You can try to remove inquiries, remove late payments, or remove collections from your credit report to help fix your credit score. If that doesn't work in your circumstances, a letter of explanation is your opportunity to elaborate on the circumstances surrounding your medical debt, and why it's not an indication of your ability to make loan payments.

Writing this letter can be stressful, since your loan approval may depend upon it. Fortunately, DoNotPay is here to help you explore all your options, from credit dispute letters to debt validation letters, and we can help you write a , too.

What Is a Letter of Explanation for Medical Collections?

If your medical bill went to collections, it will hurt your credit score. In some cases, you or your insurance company may have already paid the bill, but it hasn't yet been removed from your credit report.

In either case, your outlines your circumstances and demonstrates why you're still a good candidate for a mortgage.

Strategies For Successfully Disputing Your Credit Report

Before you write your letter, you may want to dispute your credit report to have the medical collections removed, especially if that debt has already been paid. First, you should find out why the item is still listed on your report.

To do this, you can write a letter to each of the three credit bureaus asking for clarification. Their contact information is displayed in the table below.

TransUnion P.O. Box 1000 Chester, PA 19022
Equifax P.O. Box 740241 Atlanta, GA 30374-0241
Experian P.O. Box 2104 Allen, TX 75013-0949
  • If you're within 30 days of first hearing from the collection agency, you can write a debt validation letter, which is your right according to the Fair Debt Collection Practices Act. This requires the agency to confirm the debt is yours.
  • From there, you can write a goodwill letter. This is essentially asking the collection agency to remove the item from your credit score as a favor to you. In these letters, you'll want to admit to your late payments and explain why you're asking them to do this for you.

This process is time-consuming, as it can involve multiple letters and the associated waiting periods to get a response. Instead of hassling with it on your own, DoNotPay takes a unique approach that combines these methods to quickly improve your chances of achieving your desired outcome.

How to Write a Letter of Explanation for Medical Collections

If you're unsuccessful at cleaning up your credit report, you may need to explain your medical debt to the lender. This is what to include in that letter:

  1. Your full name and spouse's name, if applicable
  2. Your mailing address and phone number
  3. The name of your lender and their address and phone number
  4. A detailed description of anything the lender asked for, which may include the amount of your medical debt, when it was accrued, any associated account numbers, etc
  5. Your process for resolving the situation and why it won't happen again

These letters are tricky, as you'll want to include all the required information without overdoing it. You have to take ownership of the mistakes and explain the situation rather than make excuses. Finally, you need to make sure your letter is sent to the right place, and you have to follow up with them if you don't hear from them in a timely manner.

DoNotPay is here to simplify the process of improving your credit score, so you can avoid having to write a letter of explanation at all. If a letter is required, we can help you write it.

Use DoNotPay to Write a Letter of Explanation for Medical Collections or Clean Up Your Credit Report

DoNotPay makes it easy to navigate the often confusing world of credit reports. Don't waste time and create undue stress in your life by trying to deal with collection agencies and credit bureaus yourself. We already understand the process, and we can make it simple for you, no matter your credit circumstances.

If you want to clean up your credit report but don't know where to start, DoNotPay has you covered in 3 easy steps:

  1. Search Clean Credit Report on DoNotPay.

  2. Prepare a recent copy of your credit report that you can use as a reference.

  3. Let us guide you through the 4 potential options:
  1. If you've already paid off your debt, we'll help you file a Goodwill Removal Request to get it removed.

  2. If you notice any errors in your report (we have a list of common errors you can use!), we'll help you file a credit dispute to the creditor or major credit bureaus.

  3. If there are no errors, we'll check if you're still eligible to file a debt validation request. If they can't validate your debt, they're required to remove it from your report and they can't collect it!

  4. Lastly, if none of the above options work, we'll help you file a pay-to-delete negotiation letter. You can customize the amount you are willing to pay in exchange for getting the item removed.

It's fast and easy, and DoNotPay has a wide range of related services to help you deal with all sorts of credit issues, including increasing your credit limit and keeping unused cards active. It goes beyond your credit score, too.

What Else Can DoNotPay Do?

In addition to helping with , DoNotPay is here to help you navigate a variety of and financial issues. Reduce stress and save time and money by using DoNotPay for challenges like these:

Get started today. DoNotPay will guide you through some of life's most confusing and frustrating circumstances.

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