New Rules on Medical Collections You Need To Be Aware Of
Changes to Medical Debt Collection Data reported by Collection Agencies and Debt Buyers are coming July 1,2022,and continuing into the first half of 2023.
Experian, Equifax, and Transunion have agreed to three changes regarding medical collection accounts: no longer displaying paid accounts, waiting one year from the date of first delinquency to accept this data, and no longer accepting medical collections under at least $500.
These changes will remove approximately 70% of medical collections from the consumer credit reports!
Beginning July 1, 2022
★Paid medical collection debt will no longer be included on consumer credit reports.
★Time period before unpaid medical collection debt will appear on a consumer’s report will be increased from 6 months to1year.This is ultimately to stop the reporting of medical debt less than 365 days old;whichis an extensionto the existingrule of 180 days.
Beginning the First Half of 2023
★Medical debt collection accounts under a predefined minimum threshold (will be at least $500) will no longer be
included on consumer credit reports.
Information courtesy of: Cisco Credit Informational Services
Karen Jones, a Licensed Mortgage Loan Officer (NMLS 307015), is located in Scottsdale and has been serving Arizona with their home lending needs for over 40 years. As a Certified Mortgage Advisor, Karen is dedicated in ensuring that her clients are well educated and prepared for their new home loan decision.
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