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Here’s some really big news that could help those struggling with medical debt. Equifax, Experian and TransUnion announced 3 changes they say will remove almost 70% of medical debt from consumer credit reports. Here are the details:
Here are the details:
- Starting July 1, paid-up medical collection debt will no longer appear on credit reports. That means if you had medical debt that was sent to collectors but is now paid off, it will no longer show on your credit report. In the past, paid-off debt could remain on credit reports for up to 7 years.
- The amount of time until medical debt sent to collection shows up on credit reports will increase from 6 months to 1 year. So if you have unpaid medical debt in collection, you’ll now have twice as much time to reach a solution or payment plan before the debt shows on your credit report.
- Beginning the first half of 2023, medical collection debts under $500 will not be included on credit reports.
These changes are being made only by Equifax, Experian and TransUnion; other credit reporting agencies may continue reporting medical debt. Still, the impact of the changes could be huge.
According to a report by the Consumer Financial Protection Bureau (CFPB), U.S. credit reports overall include $88 billion in medical debt. And medical debt collections appear on 43 million credit reports. The CFPB says medical debt can limit consumers’ access to credit, increase the risk of bankruptcy and cause people to put off getting medical care.1
Speaking of credit reports, remember you can get free weekly online credit reports through the end of 2022. Here’s more information: https://bit.ly/3MD4SXp