Medical debt is a huge problem for consumers in Georgia and throughout the country. In fact, a whopping 40% of Americans have overdue medical debt in debt collections. Of course, some of this debt is legitimate, but a big chunk of it is not. Unfortunately, debt collectors frequently report medical debt incorrectly. Often, unpaid bills show on Georgia credit reports before insurance companies pay their share. Then, these so-called delinquent accounts seldom vanish from credit reports after resolution. Now, however, the major credit bureaus are changing their medical debt reporting policies. So, starting on September 15, some Georgians with medical debt issues may see at least a modest boost in their credit scores.
How Medical Debt Reporting Rules are Changing, and these Changes Will Benefit Georgia Consumers
Yes, debt collectors owe a ton of medical debt right now. Yet, a recent study indicates that a lot of this debt should not exist. Conductors of this study looked at medical debt belonging to consumers who filed complaints with federal regulators. They quickly discovered that consumers didn’t actually owe two-thirds of this debt. This clearly indicates a huge problem, and state attorneys general have pressured the three major credit reporting agencies into making changes to fix the problem.
This is what prompted TransUnion, Experian, and Equifax to create two new rules for reporting medical debt. First, there is now a 180-day waiting period in effect. No past-due medical bills will show up on Georgia credit reports until they are at least six months old. This will give insurance companies time to pay and consumers time to dispute overcharges and other medical billing errors. Next, once resolved, medical debt must disappear from credit reports.
After September 15, 2017, all Georgia consumers with medical debt issues should check all three of their credit reports. You are, under the Fair and Accurate Credit Transactions Act (FACTA), entitled to do this for free every 12 months. Just go to www.annualcreditreport.com and request your credit reports from TransUnion, Experian, and Equifax. Yes, the rules are changing, and inaccurate medical debt should come off Georgia credit reports. However, the credit bureaus frequently make mistakes. For this reason, it is likely that many Georgians will find inaccurate medical debt still lingering on their credit reports. If this happens to you, contact Credit Repair Lawyers of America, and we will help you get these items removed.
How Georgia Consumers Can Get their Credit Reports Cleaned Up for FREE
Inaccurately reported medical debt isn’t the only type of error commonly found on credit reports. Those who keep up with credit news probably know that this is the second batch of credit reporting changes implemented this year. The other reforms pertained to judgments and tax liens on credit reports. The point is that the credit reporting agencies are not perfect. They often mishandle consumer information, and most Georgia consumers have flawed credit reports as a result.
This is why it’s important for all Georgia residents to check their credit reports at least once every 12 months. Inaccurately reported medical debt and other types of credit report errors can damage credit scores, so these mistakes must be disputed and removed. At Credit Repair Lawyers of America, we do this at no charge to Georgia consumers. Our experienced credit attorneys will clean up your credit reports quickly, and, again, you won’t pay a penny out of pocket.
Don’t let errors on your credit reports bring your credit score down. At Credit Repair Lawyers of America, we’ve been cleaning up credit reports for consumers since 2008 for free. How do we do it? All of our fees come from the defendants in settled cases. This is why our clients pay nothing for the work we do.
Let’s start the conversation about what we can do for your credit. Set up your free consultation today by calling Attorney Gary Nitzkin at (404) 591-6680 or sending him a message through our contact page.