Credit Rating Agencies Agree to Be More Flexible About Medical Debt

Too many consumers have learned the hard way that their credit rating can be tarnished by medical bills they may not owe or when disputes delay insurer payment. That should change under a new policy agreed to this week by the three major credit reporting agencies. The agencies say they will establish a 180-day waiting period before medical debt is added to someone’s credit report. In addition, the agencies agreed that when an insurer pays a bill, the debt will be promptly removed from the consumer’s credit report, unlike certain debts that remain for years. The changes are part of a settlement between the credit rating agencies — Equifax, Experian, and TransUnion – and the New York Attorney General’s office that aims to improve accuracy and enhance procedures for disputing credit report errors. The agreement covers consumers across the country.

Source/more: Kaiser Health News

David Wingate is an elder law attorney practicing in Frederick and Montgomery counties, Maryland. The practice includes trusts, wills, powers of attorney, Medicaid, and asset protection.