The three main credit bureaus in the United States have announced new medical debt reporting measures that are expected to remove nearly 70% of medical collections from consumer credit reports.
Equifax, Experian and TransUnion said in a joint statement that medical debt that was sent to collections but paid off will be removed from credit reports rather than being kept on them for up to seven years.
The credit bureaus also said they would increase the time consumers have to pay unpaid medical bills before they are sent to collections and included on credit reports from six months to a full year.
Those changes are expected to become effective on July 1.
Additionally, starting in the first half of next year, the companies will no longer include medical debt under $500 on credit reports.
The CFPB report said that medical debt is the most common collection tradeline reported on credit reports but that medical debt collections were "less predictive than non-medical collections of future credit performance."