top of page
  • Frank Tian

🇺🇸 Bureaus Act on Medical Debts

Three major credit bureaus announced the following on 3/18:

  • Remove paid medical collection debt beginning from July 1, 2022;

  • Increase the time before unpaid debt appears on credit reports from 6 months to 1 year;

  • Exclude medical collection debt under at least $500, in 1st half of 2023.



Some Background:

According to a comprehensive CFPB report published earlier this month:

  • A total of $88 billion in medical collections,

  • Roughly every 1 in 5 adults reports medical debt.

  • 58% of collections in credit reports are medical collections.

  • Most medical debts are low tickets below $500, but 10%~ owns $1,500+.


CFPB challenged whether medical debt should be in credit reports,

Given that consumers do not have choices and visibility of the pricing.


Many lenders already do not count medical collections as collection items.


Graphs are from the CFPB report.




Recent Posts

See All

Auto Loan Update

🚗 How is the auto loan doing in 2023 so far? Everything is up. 🟦 Auto Price Up The new car price index continues to climb in May, +4.7% Y/Y. It has grown 21% since Feb 2020. Many models become luxu

Old Bank/Card Model Still On Fire

The Economist recently published a piece to highlight the resilience of credit cards in developed economies. In the US, the credit card balance dropped as much as 16% during the pandemic*, but has mad

Comments


bottom of page