Medical debt is a big burden for many Americans. In addition to the health concerns that caused the debt, unpaid bills end up on credit reports, negatively impacting consumers’ credit scores that can then prevent them from getting affordable (or any) loans and other credit.
Recently, Equifax, Experian and Trans Union took a step to correct this by deciding that beginning in July, they will remove medical debts from credit reports that have been paid after being sent to collections. Also, new unpaid medical debt will not get added to credit reports for a full year after being sent to collections. And starting the first half of next year, unpaid medical debts of less than $500 will be removed from credit reports.
These reforms will bring some welcome relief to many consumers.