As you know, a person’s credit score is used as a measure of credit-worthiness and it can influence people’s ability to get loans and the interest rates they’re charged, among other things.
Kaiser Health News reported some good news last month about a new policy agreed to by the three major credit reporting agencies with regard to medical bills. Too many of us have learned the hard way that credit ratings can be tarnished by medicals bills we may not owe, or when disputes delay insurer payments.
The agencies (Equifax, Experian and TransUnion) 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 medical bill, the debt will be promptly removed from the consumer’s credit report, unlike certain debts that remain for years.
The good news came in a settlement agreement between the agencies and the Office of the New York Attorney General. The agreement covers consumers across the country.