Credit Agencies Announce Changes To Medical Collection Reporting

Pocono Update

https://img.particlenews.com/image.php?url=2zUKte_0facIRB100
Photo by Darko Stojanovic

By Mike Lynn

The nation's three largest credit reporting services sent out emails today stating bureaus will change how they report medical bills.

Equifax, Experian, and Transunion have agreed to make important changes when reporting medical collection accounts. These changes, when taken into effect, include: The Exclusion of paid medical collection debt on consumer credit reports, an increase in the time before unpaid medical collection debt will appear on a consumer’s report, and the exclusion of medical debt collection accounts under at least $500.

According to Transunion.com, Credit reporting agencies, also known as credit bureaus or consumer reporting agencies, are agencies that collect information relevant to your credit and financial history. When you apply for a loan, request an increase on your credit limit, or even apply for a new job, your credit report will likely come into play. The three credit agencies collect and house the information that helps potential lenders or employers rate your reliability. Each of the credit agencies offers slightly different services, and not all vendors report to all three credit agencies. This means that the information on your credit report can vary from agency to agency, resulting in different scores.

Read the email here:

Equifax, Experian, and TransUnion, the three nationwide credit reporting agencies, have agreed to make important changes when reporting medical collection accounts. Equifax, changes made to the reporting of medical collection accounts include:

  • 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, also effective July 1, 2022. 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.
  • 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.

Reportedly, these changes to medical collection debt reporting are meant to support consumers faced with unexpected medical bills.

Have a news tip? Report it to (570) 451-NEWS.

Comments / 0

Published by

Pocono Update is an independent news outlet that highlights current and upcoming news, events, and artists in Monroe County and beyond. Pocono Update brings you the stories that matter most.

Stroudsburg, PA
1744 followers

More from Pocono Update

Comments / 0