Some medical debt is being removed from US credit reports

The companies say these moves will wipe out nearly 70% of the medical debt listed on consumer credit reports.

By

National News

June 30, 2022 - 4:48 PM

Help is coming for many people with medical debt on their credit reports.

Starting Friday, the three major U.S. credit reporting companies will stop counting paid medical debt on the reports that banks, potential landlords and others use to judge creditworthiness. The companies also will start giving people a year to resolve delinquent medical debt that has been sent to collections before reporting it — up from six months previously.

Next year, the companies also will stop counting unpaid medical debt under at least $500.

The companies say these moves will wipe out nearly 70% of the medical debt listed on consumer credit reports.

Patient advocates call that a huge advance. But they question whether medical debt should be on credit reports at all, given that many see it as a poor indicator of whether someone is trustworthy for a loan or rent.

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