Economy

Many Americans’ medical debt to be wiped from credit reports

Pinterest LinkedIn Tumblr

(NEXSTAR) — Many Americans who have seen their credit score take a hit because of medical debt could soon see relief.

Effective July 1, three of the nation’s largest credit reporting agencies – Equifax, Experian and TransUnion – will stop including paid medical collection debt. Currently, that debt can remain on your record for seven years, CNBC reports.

Additionally, the agencies have agreed to extend the time period before unpaid medical collection debt appears on a consumer’s credit report from six months to one year. Starting next year, medical collection debt under $500 will no longer appear on credit reports from Equifax, Experian and TransUnion.

These changes are expected to remove almost 70% of medical debt tradelines from consumer credit reports, the agencies said in a joint statement earlier this year.

A recent report from the Consumer Financial Protection Bureau found an estimated $88 billion in medical debt collections appears on consumer credit reports as of early 2021. Medical collections were found on 43 million credit reports, according to the CFPB.


Boy Scout comforts dying driver after train derailment

When medical bills appear on credit reports, consumers may find themselves at an increased risk of bankruptcy, avoiding additional medical care or struggling to secure a job, the CFPB said. The debt can also lower your credit score, making it harder to get approved for loans, other credit or better interest rates, CNBC reports.

“Medical collections debt often arises from unforeseen medical circumstances. These changes are another step we’re taking together to help people across the United States focus on their financial and personal wellbeing,” Mark W. Begor, CEO of Equifax; Brian Cassin, Experian’s CEO; and TransUnion CEO Chris Cartwright said in a joint statement. “As an industry, we remain committed to helping drive fair and affordable access to credit for all consumers.”

The Biden administration has also made recent changes to tackle medical debt. In April, it announced reforms to reduce or eliminate medical debt as a factor in government lending decisions.

© 1998 – 2022 Nexstar Media Inc. | All Rights Reserved.

Trending on NewsNation


These airports allow you to bypass long TSA lines for free

Morning In America Video Icon

Video


TV anchor Jodi Huisentruit never made it to work

Missing 1 hour agoVideo Icon

Video


New images released of possible disguises for Kaitlin Armstrong

Southwest 1 hour agoVideo Icon

Video


Exclusive: Former associate says ‘we know the names’ in Epstein eight

Banfield Video Icon

Video


1955 warrant in Emmett Till case found

Mid-South


Mother pushing stroller fatally shot on NYC’s Upper East Side

Northeast 1 hour agoVideo Icon

Video

Elections 2022


Utah primary election results

Elections 2022


Mississippi primary runoff election results

Elections 2022


New York primary election results

Elections 2022


Illinois primary election results

Elections 2022


Colorado primary election results

Elections 2022


Oklahoma primary election results

Elections 2022


More Elections 2022

More Stories


Key inflation gauge tracked by the Fed remains a high 6.3%

Inflation isn’t showing any signs of slowing down, as an important gauge is up sharply from this time last year.

Your Money 23 mins ago


SCOTUS rules states can be sued for discriminating against veterans

The justices ruled for Army veteran Le Roy Torres under a federal law that was enacted in 1994 in the wake of the Persian Gulf war to strengthen job protections for returning service members.

U.S. 1 hour ago

Video Icon

Video


Shortages, fire dangers snuff out July 4 displays

This year, more cities are canceling their annual Fourth of July firework displays due to wildfire threats and the supply chain crisis.

U.S. 44 mins ago


Holiday travel concerns impacting celebrations?

From the ground to the sky, inflation mixed with labor shortages has created a chaotic summer travel season marked by delays and cancellations; and it may get worse this weekend amid the Independence Day holiday travel.

U.S. 46 mins ago

Video Icon

Video


Immigration, environment at stake at Supreme Court

SCOTUS will decide on two cases Thursday. One case will determine whether Texas overstepped the federal government’s foreign policy decision.

U.S.

Video Icon

Video


OPEC+ may not be much help with high oil, gasoline prices

OPEC+ may have trouble helping with the global oil crisis even if members meet their production targets.

Business


Tropical system soaks Texas, rain rings in weekend elsewhere

A tropical system will soak Texas and Louisiana with isolated flooding. A cold front will bring rain farther north.

Weather


Women unite against ‘The Tinder Swindler’

The alleged victims are teaming up against the so-called swindler with the owner of the diamond company that the man identified as Simon Leviev is accused of using in his reported scheme.

U.S.


Exclusive: Former associate says ‘we know the names’ in Epstein eight

NewsNation’s Brian Entin spoke with former Jeffrey Epstein associate Christina Oxenberg about the discussions she had with Epstein’s partner Ghislaine Maxwell, including talk of secret recordings involving some famous people.

Banfield

Video Icon

Video

More Stories


FCC commissioner wants TikTok removed from app stores

On Balance with Leland Vittert 1 hour ago

Video Icon

Video


How this grandmother solved her own murder

NewsNation PRIME

Video Icon

Video


Supreme Court rules veteran can sue to get job back

Rush Hour

Video Icon

Video


What the decline in GDP means for your wallet

Your Money

Video Icon

Video


Here’s what airlines are doing to handle holiday surge

Rush Hour

Video Icon

Video


FDA warns against baby neck floats after child dies

Health


Texas to deploy ‘strike teams’ following migrant deaths

Immigration

Video Icon

Video


Human smuggling and trafficking are not the same

Immigration


Giuliani’s former Ukraine fixer gets 20 months in prison

2020 Election


1955 warrant in Emmett Till case found

Mid-South


Last remaining WWII Medal of Honor recipient dies at 98

U.S.


Four people who died in Missouri Amtrak derailment identified

Mid-South

Video Icon

Video