Experian, Equifax and TransUnion have been working on the changes for months. The changes will remove nearly 70% of medical debt from consumer credit reports. The credit reporting agencies have been under pressure from the Consumer Financial Protection Bureau.
Highlights
- Experian, Equifax and TransUnion have been working on the changes for months.
- The changes will remove nearly 70% of medical debt from consumer credit reports.
- The credit reporting agencies have been under pressure from the Consumer Financial Protection Bureau to address the issues surrounding medical debt.
- Unpaid medical debts will not be added to credit reports until a year has passed since the debts have been sent to collections.
- The CFPB found that $88 billion in medical debt was on consumer credit files as of June 2021, and 58% of all third-party debt collection was for medical debt, making it the most common form of debt for consumers, the bureau said.