Salt Lake City, UT (PRWEB) March 16, 2015
CreditRepair.com, a leading provider of credit report repair services, reacts favorably to the new agreement announced Monday between New York Attorney General Eric Schneiderman and the three biggest U.S. credit-reporting agencies, Equifax, Experian and TransUnion.
Under the agreement, the credit bureaus have approved the hiring of employees tasked to review consumer credit disputes independently, directly liaising with credit card companies and lenders. With this, some of the burden to correct erroneous reports will be lifted off of the consumer. Additionally, medical debts will be granted a 180-day waiting period to allow time for insurance payments to be applied.
“Sometimes technically accurate, but entirely unfair, credit reporting can appear within credit reports. Certain kinds of charged-off medical debt can be a perfect example of this,” said Scott Smith, President of CreditRepair.com. “The agreement reached by the state of New York with the major consumer reporting agencies constitutes a real win for consumers in this regard.”
According to a December 2014 report by the Consumer Financial Protection Bureau (CFPB), more than 43 million Americans have delinquent medical debt on their credit reports. This amounts to one in five credit reports being adversely affected. Moreover, the CFPB found that some 15 million consumers would have no collection items on their credit reports if not for the medical debt on these reports.
Smith continues, “The new mandates on medical debt in particular will provide a reasonable time buffer for patients and insurance companies to work out complex payment arrangements before the debt is sent out for collections. That’s a very good thing, because collections and charge offs will ruin credit scores for up to seven years before they age off of the affected credit reports.”
Implementation is expected to begin over the next few months with the possibility of additional agreements on the horizon.