Close to 70% of all medical debt is being removed from credit reports by three major credit reporting agencies.
#Roommates, your credit report has the capacity to influence nearly every aspect of your life, and if you’ve always wished that some of your debt might be forgiven one day, you’re finally in luck.
According to recent reports, about 70% of all medical debt will be formally deleted from consumer credit reports by three of the country’s top credit reporting companies.
According to CNN, Equifax, Experian, and TransUnion, three of the country’s main credit reporting companies, are taking significant steps to reduce the debt of many Americans, which totals billions of dollars.
Consumers who built up unexpected medical bills will have over 70% of their medical debt permanently eliminated, according to credit reporting companies. Paid medical collection debt will no longer appear on consumer credit reports as of July 1st.
Millions of people in the United States have had their credit scores decreased as a result of bills being paid after they had been sent to collections, which would stay on credit reports for seven years.
In addition, instead of the previous six months, unpaid medical debt will now appear on consumer credit records after one year. Equifax, Experian, and TransUnion also announced that beginning in early 2023, any medical collection debt under $500 will be removed from credit records.
The Consumer Financial Protection Bureau conducted extensive research to bring about these modifications. According to the Consumer Financial Protection Bureau, Americans accumulated $88 billion in medical debt as of June 2021, making it the most common debt collection on credit records.
“Medical collections debt often originates from unforeseen medical situations,” the three credit agencies stated in a joint statement. These reforms are another step we’re taking together to assist folks all throughout the country focus on their financial and personal health.”
According to statistics, Black, Hispanic, and low-income Americans are the most significantly impacted by unpaid medical bills.