The three national credit bureaus have announced that they are making significant changes to the way medical debt collection data is reported on consumer credit reports. Specifically, the bureaus have agreed to three major changes, which are anticipated to impact 70% of medical collections.
- Effective July 1, 2022, paid medical collection debt will no longer be included on consumer credit reports.
- Also, effective July 1, 2022, the time period before unpaid medical collection debt will appear on a consumer’s report will be increased from 6 months to one year.
- In the first half of 2023, medical debt collection accounts under a pre-defined minimum threshold (will be at least $500 and published later this year) will no longer be included on consumer credit reports.
We suggest that our clients review these changes to determine what impact they will have to their existing processes.
We are working closely with the bureaus and the GSEs regarding these changes and we will communicate any additional details on the impact these changes may have. |
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