Today I get to answer recent reader questions about collection accounts and getting a loan to finance a medical operation.

Q: I have a debt posted to my credit record for 183.00 in 10/01/2004 by a company called NCO. Problem is I cannot find an address or phone number to this outfit to find out who they are and why they have a debt for me.  I have never been in PA so I am bewildered how they would have anything to do with me. I have lived in ID, WA and OR.  If I had to have something in collection I would think that the company would have someone local that would at least contact the person to let them know they have a debt.  I work for a government entity and the government certainly has to give due process!

A: NCO is a very large collection agency based in Pennsylvania. They handle debts for companies across the nation. By law, you should find contact information for them listed on your credit report, or the credit reporting agency should supply it to you upon request. If not, however, you can contact NCO following the instructions on their website.

It is hard to tell at this point what debt led to this collection item. It could be a medical bill that slipped through the cracks, or perhaps it is a debt belonging to someone else. Your first step should be to write a certified letter to NCO requesting verification of the debt. Explain you don&39;t believe it is yours, and ask for details of the original bill. NCO should get back to you within thirty days.

In the meantime, you can also dispute the debt through the credit reporting agency on the basis that you don&39;t believe it is your debt. While it is under dispute it won&39;t affect your credit score.

You can learn more about your rights when it comes to collection accounts by listening to my online radio interview with attorney John Ventura here.

As for the issue of notification before the item is posted to your credit report, I couldn&39;t agree more with you. It&39;s crazy that your credit score can be signficantly hurt by a bill you know nothing about. There is a rather weak provision in the Fair Credit Reporting Act that requires some notification by creditors before they report negative information, but it&39;s a general notice and not very effective. The only way that will change is if enough consumers speak up! Complain to the Federal Trade Commission and your Senators and Representative.

Q: I have bad credit and I want to fix it but now. Because I want to do an operation that I have to pay $14,000 for and I can&39;t get a loan. This operation is very important for me. Please help me.

A: It sounds like you are in a very tough situation. First, you can learn a lot about improving your credit in the Credit.com Learning Center.You should find the answers to most of your questions about building better credit here, but if you don&39;t, feel free to submit your specific credit questions to this blog. (The more specific you are about the items you are having trouble fixing, the better we are able to advise you.)

Secondly, for the operation you need, I am assuming you are not eligible for Medicaid, Medicare or a private health insurance plan. However, you should make sure you have checked out those options very carefully and ruled them out. Many states also offer health assistance programs, and you can research programs in your state by searching the Internet using terms such as (your state) + health insurance assistance or (your state) + afforable health care.

Next, I would recommend you talk to both doctors and hospitals who could provide your services. Find out whether a payment plan or financial assistance is available. Be persistent.

You may also want to contact your Senators and Representative in Washington. I interned for a Senator during college, and my job was to research constituent problems and try to help resolve them. The service is free and often can be very helpful!

If you cannot get financial assistance, negotiate for a discount if you pay cash (if you do obtain a loan). Shop around to other hospitals if your local one is not cooperative.

A friend of mine recently needed surgery and she does not have health insurance. She was able to get the cost cut by nearly a third by negotiating with a hospital about two hours away and agreeing to pay cash. (The local hospital would not budge on its price.)

While you work on improving your credit, you may want to look at non-traditional loan sources such as friends and family or a private lender.

It&39;s truly a shame that so many Americans cannot afford the health care they need. I hope you are able to find a way to get your operation.