Credit reporting agencies agree to remove nearly 70% of medical debt from consumer credit reports.
All you need to know!
Beginning in July, the three major credit reporting agencies will remove medical debt after it is paid.
It will take one year for new unpaid medical debt to appear on a consumer's credit report instead of 6 months.
In the first half of 2023, Credit reporting agencies will no longer include medical collection debt under $500 on credit reports. The $500 threshold could rise, according to sources familiar with the matter.
Its impact on the medical industry.
Professionals active in the medical field are concerned that removing certain debts from a consumer's credit report may cause consumers to avoid paying their share of medical bills.
Its impact on the lending industry.
The banking industry has also expressed concern that removing certain debts could make some loan applicants appear less risky, resulting in unexpected defaults and losses.
Bottom line.
A medical practice that wishes to benefit from having their low-balance accounts reported to the credit bureaus should act fast and submit their accounts as soon as possible.
