On July 1, 2022, the three largest credit bureaus - TransUnion, Equifax, and Experian began removing medical debts from consumer credit reports. This will remove approximately $88 billion in debt from an individual's consumer credit report, providing a large relief because it improves their ability to get better interest rates. If you or someone you know has medical debt that was severely impacting their credit score, you may be wondering:
- What are the recent changes implemented by credit bureaus concerning my medical debt?
- Which debts qualify for deletion?
- If the medical debt is paid, will it stop being reported?
- Who is affected by the credit bureaus' changes?
If you or someone you know have medical debts reported on your consumer credit report when you believe they should be removed, you may want to discuss why it hasn't been removed with an attorney. To schedule a free consultation where an attorney will review your issues and determine a strategy to be used moving forward, contact us at 888-301-0584 or online.
Recent Changes Implemented By Credit Bureaus
On July 1, 2022, the credit bureaus implemented the following rules:
- As a result, paid medical debt that was once in collections will no longer be included on credit reports.
- You'll have one year before unpaid medical debt will be reported on someone's credit report.
- Starting at some point in 2023, TransUnion, Equifax, and Experian will no longer include medical debt in collections under $500 on credit reports.
Which Debts Qualify For Deletion?
Not all medical debt will be removed from a credit report; however, there is certain debt that is required to be removed. First, any medical debt in collections must be removed, meaning no inquiry should remain after the medical debt is paid. Second, any debt that has not been in default for at least one year should not appear on a credit report. Last, if the amount of medical debt in the collection is under $500, it should not appear on your credit report.
If The Medical Debt Is Paid, Will It Stop Being Reported?
Once the medical debt is paid and removed from collections, the three major credit report companies should remove the debt from your credit reports.
How Do I Avoid Medical Debt Being Included On My Credit Report?
If you want to avoid your medical debt going into default, it is recommended that you inform whomever you owe the medical debt to once you receive the bill. Additionally, review the medical bill to ensure it does not contain any errors, as it is not uncommon for a medical bill to have some errors. As a result, informing that you received the bill and notifying you of any errors will likely freeze the clock when the provider may be defined as in default.
Who Is Affected By The Credit Bureaus Changes?
The changes made by the credit bureaus can help all Americans. While 90 percent of Americans have health insurance, medical debt is still a major problem within the United States. Generally, even if individuals have health insurance, they still have extremely high deductibles and out-of-pocket expenses.
In fact, in a report conducted by the Consumer Financial Protection Bureau, the changes made by the credit bureaus will result in two-thirds of medical collection debt will be removed from credit reports.
Hiring A Medical Debt Attorney In New York
If you or someone you know have medical debts that you believe should be removed from your credit report, you may want to discuss the facts of your situation with an experienced debt attorney. The attorneys at Law Office of Simon Goldenberg, PLLC will review your situation and discuss the best strategy for your case. To schedule a free, confidential consultation, contact Law Office of Simon Goldenberg, PLLC by calling us at 888-301-0584 or online.