Published On: Mon, Mar 9th, 2015

NY AG Schneiderman Wants to Make Credit Rating Agencies More Customer Friendly

Medical debt covered by insurance will not weigh down credit scores

 

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New York Attorney General Eric Schneiderman wants credit reporting agencies more accountable concerning dealing with errors and with medical debt, as reported by Reuters. 

Equifax Information Services, Experian Information Solutions and TransUnion agreed to take the initiative in solving disputes over information. The three credit rating agencies or CRAs assign credit ratings to around 200 million customers that will allow them to decide whether or not to lend.

Schneiderman has negotiated a deal to delay the placing of medical debts on the reports until a 180 day waiting period to allow insurance payments to be taken into account, after which time, the debt will be erased. The CRAs will allow have trained employees review documents when a customer disputes something on the credit report.

Schneiderman said, according to Reuters, “The nation’s largest reporting agencies have a responsibility and correct errors on consumers credit reports. This agreement will reform the entire industry and provide vital protections for millions of customers across the country.”

The move is part of a trend to make medical debt, which is often covered by insurance companies, less of a hinderance in establishing sound credit. FICO said it would remove medical debt from assessing a credit score last August.

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