Consumer Alert: Got medical debt? New rules could mean a big jump in your credit score
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ROCHESTER, N.Y. – This consumer alert has some good news for anyone with medical debt. New rules are now in effect that might improve your credit score. We know medical debt is the primary reason people declare bankruptcy. These new rules could affect millions of Americans.
Not only are millions of Americans burdened with medical debt, when that debt is reported to the credit bureaus, it destroys your credit score. This ultimately costs that patient even more money.
Now, no medical debt can be reported to the bureau until after a full year. That gives you time if, for example, you’re battling with your insurer. Anyone who has had a serious illness, including this consumer investigator knows that’s huge.
Secondly, when you pay off that debt, the credit bureaus must remove it from your credit report. Lastly, if the medical debt is less than $500, it can’t be reported to the bureaus. So, you need to check your credit report to make sure the bureaus are following these new rules, and dispute debt that shouldn’t be there. Click here to get your free report.
If you find medical debt on report that shouldn’t be there. Contact all three credit bureaus.
· By mail: Request your credit freeze by certified mail.
o Use the following address:
§ Equifax Security Freeze P.O. Box 105788 Atlanta, GA. 30348
· By phone: 1-888-909-8872
· By mail: Request your credit freeze by certified mail
o Use the following address:
§ TransUnion LLC P.O. Box 2000 Chester, PA 19016
· By phone: 1-888-EXPERIAN (1-888-397-3742).
· By mail: Request your credit freeze by certified mail.
o Use the following address:
§ TransUnion LLC P.O. Box 2000 Chester, PA 19016