Millions of Americans could see their credit scores increase by 25 points on average after the major credit bureaus eliminated unpaid medical collections under $500 from their credit reports.
“I am asking your companies to stop putting medical debt on these reports,” Sen. Sherrod Brown, , Chair of the Senate Banking, Housing and Urban Affairs Committee“After increasing scrutiny and pressure, one year ago, Equifax, Experian, and TransUnion all announced they would significantly change how medical collection debt is reported. This is a positive first step, but it is not enough.
With the latest effort, the CFPB’s analysis estimated that approximately 22.8 million people had at least one medical collection removed from their credit reports and 15.6 million had all medical collections eliminated from their credit reportsNew York City resident Tiffany Trilli, 25, visits the Experian Boost website on a tablet to view her credit score in Detroit.
While the national credit reporting agencies have taken steps to reduce the burden of medical collections from credit reports, medical debt and the system'sLast year, the CFPB noted that medical debt disproportionately affects low-income families and communities of color, perpetuating the racial wealth gap – and hurting their relationship with the health care system.