Medicredit Debt Collection: How to Settle or Fight Back

Receiving endless calls and letters from Medicredit can feel overwhelming. You might not even recognize the name at first. That’s because you never did business directly with them.

Medicredit Corporation is a debt collection agency owned by The Outsource Group. They buy charged-off debts from original creditors at steep discounts. Then they attempt to collect the full amount from you. If they succeed, they profit handsomely.

Their collectors often use aggressive tactics. They frequently file lawsuits to recover the full debt amount. But you have more power than you think.

You Have Legal Rights Against Medicredit

Medicredit often counts on you not knowing your rights. The Fair Debt Collection Practices Act (FDCPA) protects you from abusive collection practices.

Debt collectors cannot harass you with vulgar language. They cannot call before 8:00 AM or after 9:00 PM. They cannot contact you at work if you tell them to stop.

Many collectors make false promises to pressure you into paying. They might claim they can immediately remove negative marks from your credit report. That’s not true. They don’t have that authority.

If Medicredit violates these rules, you can sue them. You may recover damages and attorney fees.

How to Respond to a Medicredit Lawsuit

Getting served with a lawsuit is serious. You must act quickly to protect yourself.

When you receive the complaint, the clock starts ticking. You typically have 20 to 30 days to file your Answer. Missing this deadline means Medicredit wins by default.

Our partner Solo helps you respond correctly in just 15 minutes.

Essential Steps When Filing Your Answer

• Never admit you owe the debt. Make Medicredit prove it.
• File your Answer with the court clerk before the deadline.
• Send a copy of your filed Answer to Medicredit.
• Demand proof that you’re the right person and owe the exact amount claimed.

Remember, Medicredit bears the burden of proof. They must provide evidence, not just claims.

Powerful Defenses Against Medicredit

Your Answer gives you a chance to expose weaknesses in their case. Medicredit must prove three critical elements:

1. You are the person responsible for the debt.
2. They have legal standing to sue you.
3. You owe the specific amount they claim.

If they can’t prove all three, you can win.

The Statute of Limitations Defense

Every debt has an expiration date for lawsuits. Each state sets different time limits, usually between three and six years.

If Medicredit waited too long to sue, the statute of limitations has expired. You can file a motion to dismiss the entire case with prejudice. That means they can never sue you again for this debt.

File a Counterclaim for FDCPA Violations

If Medicredit broke the law while collecting from you, fight back. You can file a counterclaim against them in the same lawsuit.

Document every violation: harassing calls, threats, false statements, or unauthorized workplace contact. You could recover up to $1,000 in damages plus attorney fees.

Settle Your Medicredit Debt Outside Court

Most collection agencies prefer settlement over lengthy court battles. Medicredit is no exception.

You can negotiate before your court date arrives. Start by offering 30-50% of the claimed amount. They’ll likely counter with a higher figure.

Negotiation takes patience, but the payoff is worth it. You’ll save money and avoid court. Once you reach agreement and pay, Medicredit dismisses the lawsuit.

How to Negotiate Effectively

• Get everything in writing before you pay anything.
• Never give them direct access to your bank account.
• Request a pay-for-delete agreement if possible.
• Make sure the settlement states they’ll dismiss the lawsuit.
• Keep all documentation for your records.

Settlement works best when you have some leverage. Filing a strong Answer gives you that leverage.

Your Action Plan Against Medicredit

Here’s your step-by-step strategy to beat Medicredit:

• File your Answer within the court deadline. Missing this means you automatically lose.
• Demand proof of the debt. Make them produce documentation.
• Document every phone call, especially those outside allowed hours or at work.
• Raise the statute of limitations if applicable. Check your state’s time limit.
• Assert all FDCPA violations in your Answer or counterclaim.
• Consider settlement once you’ve established your defenses.

You don’t have to face this alone. Our partner Solo provides tools and guidance to respond properly.

What Happens If You Ignore the Lawsuit

Ignoring a Medicredit lawsuit is the worst possible choice. The court enters a default judgment against you.

With a judgment, Medicredit can garnish your wages. They can freeze your bank accounts. They can place liens on your property.

A judgment also devastates your credit score for up to seven years. It makes getting loans, apartments, or even jobs much harder.

Fighting back is always better than hiding.

Know When to Seek Legal Help

Some cases require professional legal assistance. Consider hiring an attorney if:

• The debt amount exceeds $5,000.
• You have evidence of serious FDCPA violations.
• You’re unsure about your state’s statute of limitations.
• Medicredit has already obtained a judgment against you.

Many consumer attorneys work on contingency for FDCPA cases. That means they only get paid if you win.