HomeEconomyCredit Reporting Agencies Will Erase Most Medical Debt

Credit Reporting Agencies Will Erase Most Medical Debt


Related stories

How is the Landscape of New Casino Sites and Apps in the UK

In the bustling digital realm of the United Kingdom,...

How legal Is QNET?

The resiliency of the direct selling industry makes it...

Tech Leader and Launch House Founder Brett Goldstein Talks about the Power of Accelerators

Startup founders looking to pour resources, both financial and...

4 Celebrities with Inspiring Weight Loss Stories and How They Achieved It

Celebrities often lose weight to suit their roles, look...

Equifax (EFX)And the Experian (EXPGF) And the TransUnion (TRUE) It would wipe out billions of dollars from the accounts of consumers who encountered unexpected medical bills they were unable to pay. The three companies said they made the move after months of research.

“Medical collection debts often arise from unforeseen medical conditions. These changes are another step we are taking together to help people across the United States focus on their financial and personal well-being,” the two companies said in a joint statement.

Next ad Research From the Consumer Financial Protection Bureau showing that Americans accumulated $88 billion in medical debt on consumer credit records as of June 2021. The CFPB said it was the most common credit account for debt collection on credit records.

Medical debt can be volatile, unpredictable, and it can be negative It affects many financially secure consumers. The bureau said black, Hispanic, young and low-income consumers are most likely to be affected by medical debt.

Medical debt fears have risen since the COVID-19 pandemic Healing millions of peopleCFBP director, Rohit Chopra, was openly criticize For medical debt collection by credit reporting agencies. On March 1, Chopra said the CFPD would “closely scrutinize” the three major credit reporting agencies.

“We expect them to take their role seriously as key players in the credit reporting system – a system whose integrity and accuracy can determine the financial futures of hundreds of millions of people,” Chopra said.

As of July 1, medical collection debt paid will no longer be included in consumer credit reports. Millions of Americans had previously lowered credit scores because debts paid after being sent to collections can appear on credit reports for up to seven years.

More changes are expected. It will now take one year before an unpaid medical collection debt appears on a consumer report, instead of the six months, which was the previous standard.

The three companies also said that from the first half of 2023, medical collection debts of less than $500 will not be included in credit reports.


- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories


Please enter your comment!
Please enter your name here