The Conservative Cave
Current Events => The DUmpster => Topic started by: CC27 on April 08, 2022, 01:30:09 PM
-
Marthe48 (8,495 posts)
Has been posted, but reminder about medical debt and credit report changes
I was on facebook reading a post from a younger friend, who needs medical tests, and is worried about the costs. Many of her friends replied, and mentioned (lack of) coverage nightmares they are enduring. One person mentioned that she has no debt except medical bills. I had read this news on DU a few weeks ago, and found an article to share on that fb post.
Starting this summer, thanks to PRESIDENT JOE BIDEN, medical debts will either drop off your credit report, or will not show up. This means, I hope that people drowning in medical debt will be able to salvage their credit score and maybe other aspects of their lives. Here is a link to the article I shared with fb.
https://www.cnbc.com/select/medical-debt-credit-report/
https://www.democraticunderground.com/100216575738
I thought Obamacare fixed all this DUmmies? :whatever:
-
So, screwing over your doctors and hospitals by paying their bills slowly or not at all, while paying consumer debt won't affect one's credit rating. Brilliant!
-
False info. I did residential mortgage loans for 30 years and medical debts were never figured into your credit rating. Now, Slo Joe may sign something that says they don’t show up on your credit report, but they were never figured into your credit score.
The article reads:
“The three largest credit bureaus, TransUnion, Equifax and Experian are removing cleared medical debts from consumers credit reports beginning in July. This means that if you’ve paid your medical bill in full and the debt is still sitting on your credit report as a negative mark, this negative mark will now be removed.”
So those you paid off no longer show, but those which are still outstanding continue to show up.
See, these things were never a concern to mortgage lenders unless the debt could be attached to the residential property. Now some judgments could be attached to the property, but I’ve never seen a unpaid medical collection that got tied to real property. Since that’s not a concern, mortgage lenders don’t really care.
This article makes it sound like lenders can see you once had unpaid medical collections that have since been settled, but since they still show on your credit it put the consumer in a position where lenders or creditors would use it against them. But that’s just not the case. Basically, Slo Joe is signing into law something that doesn’t really matter.
.