The world’s three biggest credit reporting agencies have announced that they’re doing away with medical debt on credit reports starting this summer. The change directly is meant to go for those who have already paid their debts but those debts may be stuck in the process of removal or somehow delayed.
But other debts of $500 or less are also expected to be removed from credit reports in a widespread effort among the agencies to aid those negatively impacted by institutional problems preventing people from buying homes.
Equifax, Experian, and TransUnion all announced Friday they would collectively wipe 70 percent of a reported $195 billion deficit from their collection accounts.
The changes will affect an estimated 1 in 10 American adults who hold medical debt, a 2020 Kaiser Family Foundation study said.
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