(WJW) – Medical debt has crippled the credit scores of millions of Americans, making it harder to do things like buy a house or a car.
Two years into the pandemic that has killed millions, three credit reporting agencies – Equifax, Experian and TransUnion – have come together to help eliminate medical debt from credit scores by up to 70%.
The companies said they made the decision after months of research.
“Medical recovery debt often arises from unforeseen medical circumstances. These changes are another step we are taking together to help people across the United States focus on their financial and personal well-being,” the companies’ CEOs said in a joint statement.
The groups said that starting July 1, paid medical collection debts, which could remain on a credit report for up to seven years, will no longer appear. Then, beginning “first half of 2023,” the big three also omit any medical collection debt under $500. They also plan to extend the time consumers have before unpaid debt hits their scores.
In 2021, as financial education company debt.com reported, about half of all people in this country had some kind of medical debt, with more than half of those in debt owing at least $1,000.
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