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New rule for not reporting medical bills to credit report when under $500 or over $500 not for a year? Where can I find this in the FCRA or FDCPA?


blkchr91
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Hi,

I keep hearing talk of this and would like to utilize this in a situation for such a medical bill. There are tons of websites about this however my Attorney nor I can find this anywhere in the text of the FCRA or FDCPA.

Where is it codified and what is the specific statute so that we can explicitly refer to it short of contacting the FTC/CFPB and asking them?

Thanks.

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I might be wrong, but I thought that was a voluntary action by the three credit reporting beureas instead of a change in the law or regulations.  I think they were aware that the impact of medical debt on credit scores was becoming a big issue and they wanted to make a change before Congress changed the law and forced them to change.

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12 hours ago, blkchr91 said:

Hi,

I keep hearing talk of this and would like to utilize this in a situation for such a medical bill. There are tons of websites about this however my Attorney nor I can find this anywhere in the text of the FCRA or FDCPA.

Where is it codified and what is the specific statute so that we can explicitly refer to it short of contacting the FTC/CFPB and asking them?

Thanks.

@JohnJohn is correct.

It’s not in the FDCPA or the FCRA.  Here’s what you need from the Consumer Financial Protection Bureau.

”The three nationwide credit reporting companies – Equifax, Experian, and TransUnion – also removed all paid medical debts from consumer credit reports and those less than a year old. They have also taken steps to remove all medical collections under $500.”

”In addition, the nationwide credit reporting companies have announced that they’re extending the amount of time you have to dispute, negotiate, or pay for any outstanding bills before they can be reported. Previously, unpaid medical bills were generally furnished to credit reporting companies after 60 to 120 days, but the nationwide credit reporting companies are now waiting one year from the time you saw a doctor before they’re allowing medical debt to appear on your credit report.”

https://www.consumerfinance.gov/about-us/blog/medical-debt-anything-already-paid-or-under-500-should-no-longer-be-on-your-credit-report/

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Thanks to the both of you. I was starting to think think that it was a voluntary thing. Is a CRA obliged to honor it's own policy? Is there any legal relief if they don't honor their own policy? I am wondering if there are any consequences for them if they don't. I just did a FOIA on the CFPB to see what sort of documentation they relied upon to post such a blog (I have read this blog before at nauseum).

I'd be happy to post what they come back with if anything at all.

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12 hours ago, blkchr91 said:

Thanks to the both of you. I was starting to think think that it was a voluntary thing. Is a CRA obliged to honor it's own policy? Is there any legal relief if they don't honor their own policy? I am wondering if there are any consequences for them if they don't. I just did a FOIA on the CFPB to see what sort of documentation they relied upon to post such a blog (I have read this blog before at nauseum).

I'd be happy to post what they come back with if anything at all.

While they should honor it if it is stated on their websites, I cannot say for sure if there are consequences for a failure to honor.  You would need to ask an attorney.  

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