Most Medical Debt To Be Removed From Credit Reports

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" Equifax, Experian and TransUnion said in a joint statement Friday that medical debt that was sent to collections but paid off will be removed from credit reports rather than being kept on them for up to seven years.

The credit bureaus also said they would increase the time consumers have to pay unpaid medical bills before they are sent to collections and included on credit reports from six months to a full year."



Don't want to post the whole article, but this jumped out.....


"The CFPB report said that medical debt is the most common collection tradeline reported on credit reports but that medical debt collections were "less predictive than non-medical collections of future credit performance."

"Medical debt can also lead people to avoid medical care, develop physical and mental health problems, and face adverse financial consequences like lawsuits, wage and bank account garnishment, home liens, and bankruptcy," the CFPB report reads."

Most medical debt to be removed from credit reports - UPI.com

The three main credit bureaus in the United States have announced new medical debt reporting measures that are expected to remove nearly 70% of medical collections from consumer credit reports.

www.upi.com

As far as I'm concerned, medical costs should NEVER lead to liens, garnishment or bankruptcy. I'm not sure anything other than elective treatment costs should even be reported to credit bureaus.

 

[nakedfrog]

I had so many wages garnished from medical expenses in the late 2000s... Kinda sucks when you're already having a hard time with life, having constant hospital bills, the stream of incoming bills never ends, and oh, now you're getting garnished too.

 

[A///]

I was picking up a heartattack burrito yesterday from a small place and was chatting with an EMT who brought this up and something about ambulance bills not going to collections.

 

[Lost_in_the_HTTP]

Another step to reign in the corporate beasts.

Biden Targets Personal Medical Debt Bankrupting Americans

As part of the larger battle to cut health costs, President Biden wants to help Americans avoid medical debt, the leading cause of bankruptcy in the US.


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Update

Nearly 70 Percent of Medical Debt Set to Be Wiped From Credit Reports

In March, the Kaiser Family Foundation published a report which found that roughly 23 million U.S. adults have medical debt.

www.newsweek.com

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