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Millions of Americans continue to have their credit dinged by medical debt despite changes to how this debt should be reported, the CFPB said in a report.
To support those who are faced with unexpected hospital bills, Equifax, Experian and TransUnion last year implemented steps to remove nearly 70% of medical debt in collections from credit reports. The companies announced they would increase the time before medical bills in collection can appear on credit reports – from 180 days to one year. Additionally, medical bills that had been in collection but were resolved would no longer appear on credit reports and any medical debt under $500 would be excluded.
While the frequency of medical debt appearing on credit reports has declined, the CFPB said some 15 million Americans are still struggling with more than $49 billion in outstanding medical bills in collection on their credit reports. That is primarily because the …