Legislation Would Give Consumers 120 Days to Resolve Medical Debts Before Dinging Credit Reports

May 28, 2013
Consumerist 

U.S. lawmakers recently introduced the Accuracy in Reporting Medical Debt Act, which aims to protect consumers from credit damage caused by collections based on incomplete, inaccurate, or outdated information. The bill, an amendment to the Fair Debt Collection Practices Act, would give consumers up to 120 days to resolve a medical debt before it can be submitted to Equifax, Experian, or TransUnion. Debt collectors would have to honor the grace period for consumers who can prove that they are still trying to work out the issue with a health insurer; were unaware of the debt or disputes owing it; or have applied for financial assistance. The act, which gives consumers time to prevent credit dings in the first place, will work hand in hand with the proposed Medical Debt Relief Act, which would require paid medical debts to be scrubbed from credit reports 45 days after being paid.
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