When an unforeseen medical issue or emergency happens, the subsequent medical bills can wipe out people financially. At the very least, owing tens or even hundreds of thousands of dollars or more will almost certainly lead to collection notices and a negative impact on a person’s credit rating.
Not for long. Equifax, Experian, and TransUnion will eliminate billions of dollars from the accounts of consumers who faced huge medical bills they couldn’t pay. The Consumer Financial Protection Bureau released info that Americans had accumulated a staggering $88 billion in medical debt sitting on consumer credit records. Medical bills are by far the most common debt collection credit accounts people have on their credit reports.
Here’s a quote from a joint statement released by the three reporting bureaus.
“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 well-being.”
The Covid pandemic would lead to millions more people facing medical bills they would be unable to pay, so starting on July 1, people will still owe the money, but it won’t be reported or highlighted on their credit reports.
The three reporting agencies are doing something about small medical bills as well, saying that in early 2023, medical collection debt less than $500 will also not be included on reports.
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