In a recent press release, Equifax, Experian, and TransUnion announced significant changes to medical collection debt reporting.
Why? After months of research, these three nationwide collection agencies look to support consumers faced with unexpected medical bills.
If so, there are three upcoming changes that you need to know.
Here are three things you need to know if your credit has been negatively affected by medical collection debt.
- Paid medical collection debt will no longer be included on consumer credit reports, as of July 1, 2022.
- The time period before unpaid medical collection debt will appear on a consumer’s report will be increased from six months to one year. This change gives consumers more time to work with insurance and/or healthcare providers to address medical collection debt before it appears on credit reports, also effective July 1, 2022.
- Medical debt collection accounts under at least $500 will no longer be included on consumer credit reports. This goes into effect in the first half of 2023.
A February report by the Consumer Financial Protection Bureau estimated there is $88 billion in medical debt on consumer credit records as of June 2021.