“Medicare debt often arises from unforeseen medical circumstances. These changes are another step we can take together to help people across the United States focus on their financial and personal well-being,” the companies said in a statement.
Medical credit can be volatile, unpredictable, and even negative Affects many financially secure consumers. Black, Hispanic, young and low-income consumers are more likely to be affected by medical debt, the bureau said.
“We expect them to take seriously their role as key players in the credit reporting system — a system whose integrity and accuracy will determine the financial futures of hundreds of millions of people,” Chopra said.
Effective July 1, paid medical collections will no longer be included on consumer credit statements. Millions of Americans have their credit scores lowered because paid debts show up on credit statements for up to seven years after they’re sent to collections.
Further changes are to be expected. The unpaid medical collection credit is one year from the date it appears in the consumer declaration, instead of six months as was the case in the past.
All three companies have said that starting in the first half of 2023, medical collections of less than $500 will no longer be included on loan statements.
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