Starting July 1, millions of Americans will have debt removed from their credit reports.
Also, Equifax, Experian and TransUnion have all decided to extend the collection period from 6 months to a year.
This includes all unpaid medical services believe In groups that have been on credit reports for less than a year.
Typically this loan stays with you for seven years.
This gives consumers enough time to work with insurance companies and/or healthcare providers to process their credit before it is listed on their credit file.
Mark W. Bigor, CEO of Equifax; Brian Cassin, CEO, Experian; and Chris Cartwright, CEO of TransUnion, he said: Unexpected expenses such as unplanned medical expenses can be a burden for many families.
“These changes will transform our approach to medical collection credit reporting, designed to help consumers focus on their personal well-being,” he added.
Who will be affected?
Millions of Americans will benefit from these changes, which take effect immediately.
As mentioned above, the list includes:
- Not all medical collection debts that have been paid in full will appear on your credit report
- The period before your unpaid medical collection debt can appear on your report for six months to a year
- No medical debt of less than $500 on credit reports in the first half of 2023
Earlier this year, companies a Joint Statement These changes will remove 70% of consumers’ medical credit information from their credit reports.
This comes more than two years after the pandemic and the Consumer Financial Protection Bureau (CFPB) called for companies to change the way they report.
The CFPB reports Americans have between $81 billion and $140 billion in medical debt.
The CFPB also revealed that medical devices appeared on 43 million credit reports.
Study by United States Census Bureau 19% families could not afford the treatment fee.
Additionally, the study found that nearly 1 in 10 Americans, or about 23 million people, have medical loans starting at $250. Kaiser Family Foundation†
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