COSTA MESA, Calif., March 16, 2015 (GLOBE NEWSWIRE) — Calling it an opportunity for the “little guy” to catch his financial breath, Morgan Drexen, an MDRX Services company (http://www.morgandrexen.com) today announced their support of changes being made by Experian, Transunion, and Equifax in the way medical debt is to be reported and scored on the credit reports of millions of Americans nationwide.
Morgan Drexen announced the company’s support on the heels of this week’s announcement by the ‘Big Three’ credit reporting agencies that past due medical debt, some form of which more than 43 million Americans have on their credit reports, would now not be recorded on a person’s credit report for 180 days, allowing time for insurance payments to be received and disputes to be resolved.
“This is a huge change that should help millions of Americans who find themselves in disputes, such as those with insurance companies over payments, incorrect reporting by doctors and hospitals, as well as agreements being negotiated for reduced payments,” said Morgan Drexen’s Chief Operating Officer, David Walker. “We are in the business of providing support services for attorneys who are helping people deal with overwhelming debt, so we know first-hand what kind of hardship results from overwhelming medical debt and incorrect reporting of medical debt on a person’s credit report.”
As part of the restructuring process announced this week, regardless of when medical debts are paid by an insurance company, those debts must be removed from an individual’s credit report and if a person reports a discrepancy on their credit report, that discrepancy will be reviewed in a serious and expedited manner.
According to a Wall Street Journal report this week, credit experts are calling this “The biggest reform for the credit-reporting industry since 2003.” The last reported major change in the credit reporting industry was in 2003, when all consumers were given access to a free copy of their credit report once every 12 months from each of the major credit reporting agencies.
“Morgan Drexen is in the business of helping attorneys help people who need legal assistance with their debts,” added Walker. “Our concern is to make sure that the people who need help are getting that help – whether it comes from the attorneys we support or the credit reporting agencies themselves.” (Mr. Walker did caveat that the attorneys supported by the company did not perform credit repair services.)