As of July 1, millions of Americans will have their medical bills deducted from their credit reports.
The changes show that any medical bills incurred by the user will no longer be included in U.S. consumer credit reports.
The three companies have also decided to extend the collection period of Equifax, Experian and TransUnion from six months to one year.
This includes all unpaid medical bills in collections on less than one year of credit reports.
Normally, that debt can stay on your record for up to seven years.
This gives consumers ample time to work with insurance and / or health care providers to resolve their debt before it appears on their credit file.
Equifax CEO Mark W. Begor; Experian CEO Brian Cassin; “Unexpected costs, such as unexpected medical visits, can be difficult for many families,” said Chris Carrtit, CEO of TransUnion.
“These changes will reshape our approach to reporting medical inventory debt to help consumers focus on their personal safety,” he added.
Who will be affected?
With immediate effect, millions of Americans will benefit from these changes.
As mentioned above, the list includes the following
- Not all medical bills incurred are included in your credit report.
- Unpaid medical billing debt increases from six months to one year before your report appears
- By the first half of 2023, any medical bills of less than $ 500 will not appear on credit reports.
In a joint statement earlier this year, the companies effectively removed 70 percent of consumer medical debt information from their credit reports.
More than two years after the outbreak, the Consumer Financial Protection (CFB) has been calling on companies to change the way they report.
According to CFBB, Americans have between $ 81 billion and $ 140 billion in medical debt.
CFBB said 43 million credit reports were obtained from medical collections.
According to a US Census Bureau study, 19% of households cannot afford medical bills.
In addition, about 23 million people, 1 in 10 Americans, face medical bills starting at $ 250, according to a study by the Kaiser Family Foundation.
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