The top three credit reporting agencies are removing nearly 70% of total medical debt from credit reports
#Roommate, your credit report has the power to determine practically everything in your life, and if you’ve always hoped that one day some of your debt will be forgiven… then you’ll end up. got lucky. According to recent reports, three of America’s top credit reporting agencies have just announced that nearly 70% of total medical debt will be officially written off from consumer credit reports.
As reported by @CNN, Equifax, Experian and TransUnion, three of the country’s largest credit reporting agencies, are making big moves to ease the debt of many Americans by the billions. debt cleared. Credit reporting agencies confirm that nearly 70% of medical debt will be written off permanently from consumers paying for unexpected medical expenses. Starting July 1st, medical collection debt paid will no longer be included on the consumer credit report. The change comes as millions of U.S. residents have their credit scores lowered as a result of debts paid after they’ve been sent to collections, which will remain on their credit reports for seven years.
Additionally, unpaid medical debt will now show up on your consumer credit report after one year, instead of the previous timeframe of six months. Equifax, Experian, and TransUnion also revealed that starting in early 2023, any medical debt collection under $500 will no longer be included on credit reports. These changes are the result of rigorous research from the Consumer Financial Protection Bureau. The CFPB states that as of June 2021, Americans have accumulated $88 billion in medical debt, which is the most common debt on credit reports.
In a joint statement, the three credit bureaus said, “Medical debt collection often arises from unforeseen medical circumstances. These changes are another step we’re taking together to help people across the United States focus on their finances and personal well-being. “
Statistics also show that Black, Hispanic, and low-income Americans are most negatively impacted in relation to unpaid medical bills.
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