Equifax, Experian and TransUnion Remove Medical Collections Debt Under $500 From U.S. Credit Reports

Rhea-AI Summary

TransUnion (NYSE: TRU), alongside Equifax and Experian, announced a significant change in credit reporting regarding medical collection debts. As of April 11, 2023, nearly 70% of medical collection tradelines recorded under $500 have been removed from U.S. consumer credit reports. This adjustment reflects a commitment made by the National Credit Reporting Agencies (NCRAs) to reduce the impact of medical debt on consumers’ credit scores. Previously, as of July 1, 2022, any medical collection debt that was fully paid was also excluded from reports, and the reporting period for unpaid debts extended from six months to one year. Additionally, the NCRAs are providing free weekly credit reports until the end of 2023 to help consumers manage their financial health.

Positive

• Nearly 70% of medical collection tradelines under $500 removed from credit reports.
• Commitment to reducing medical debt impact reflects positively on consumer financial well-being.
• Free weekly credit reports provided until the end of 2023 enhance consumer support.

Negative

• None.

Now Nearly 70 Percent of Medical Collection Tradelines Are Removed from Consumer Credit Files

ATLANTA and COSTA MESA, Calif. and CHICAGO, April 11, 2023 (GLOBE NEWSWIRE) -- Equifax® (NYSE: EFX), Experian (LON:EXPN), and TransUnion (NYSE:TRU) are jointly announcing that medical collection debt with an initial reported balance of under $500 has been removed from U.S. consumer credit reports. With this change, now nearly 70 percent of the total medical collection debt tradelines reported to the Nationwide Credit Reporting Agencies (NCRAs) are removed from consumer credit files. This change reflects a commitment made by the NCRAs last year.

“Our industry plays an important role in the financial lives of consumers. We understand that medical debt is generally not taken on voluntarily and we are committed to continuously evolving credit reporting to support greater and responsible access to credit and mainstream financial services,” said Mark W. Begor, CEO Equifax; Brian Cassin, CEO Experian; and Chris Cartwright, CEO TransUnion. “We believe that the removal of medical collection debt with an initial reported balance of under $500 from U.S. consumer credit reports will have a positive impact on people’s personal and financial well-being.”

The NCRAs previously announced that as of July 1, 2022, all medical collection debt that has been paid by the consumer in full is no longer included on U.S. consumer credit reports. The time period before unpaid medical collection debt appears on a consumer’s credit report was also increased from six months to one year, giving consumers more time to address their debt before it is reported on their credit file.

To further help U.S. consumers manage financial health during continued economic uncertainty, Equifax, Experian and TransUnion are also providing free weekly credit reports through the end of 2023 via AnnualCreditReport.com.

For more information, please visit: Equifax, Experian and TransUnion.

ABOUT EQUIFAX INC.
At Equifax (NYSE: EFX), we believe knowledge drives progress. As a global data, analytics, and technology company, we play an essential role in the global economy by helping financial institutions, companies, employers, and government agencies make critical decisions with greater confidence. Our unique blend of differentiated data, analytics, and cloud technology drives insights to power decisions to move people forward. Headquartered in Atlanta and supported by nearly 14,000 employees worldwide, Equifax operates or has investments in 24 countries in North America, Central and South America, Europe, and the Asia Pacific region. For more information, visit Equifax.com.

ABOUT EXPERIAN
Experian is the world’s leading global information services company. During life’s big moments – from buying a home or a car, to sending a child to college, to growing a business by connecting with new customers – we empower consumers and our clients to manage their data with confidence. We help individuals to take financial control and access financial services, businesses to make smarter decisions and thrive, lenders to lend more responsibly, and organizations to prevent identity fraud and crime.

We have 21,700 people operating across 30 countries and every day we’re investing in new technologies, talented people, and innovation to help all our clients maximize every opportunity. We are listed on the London Stock Exchange (EXPN) and are a constituent of the FTSE 100 Index.

Learn more at www.experianplc.com or visit our global content hub at our global news blog for the latest news and insights from the Group.

ABOUT TRANSUNION
TransUnion is a global information and insights company with over 12,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru™ picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world. http://www.transunion.com/business

FOR MORE INFORMATION:
Tiffany Smith for Equifax
mediainquiries@equifax.com

Scott Anderson for Experian
scott.n.anderson@experian.com

Dave Blumberg for TransUnion
David.Blumberg@transunion.com

FAQ

What percentage of medical collection debts has been removed from consumer credit reports by TransUnion?

TransUnion, along with Equifax and Experian, has removed nearly 70% of medical collection debts under $500 from consumer credit reports.

When was the change regarding medical debts reported by TransUnion announced?

The announcement regarding the removal of medical collection debts was made on April 11, 2023.

What is the significance of removing medical collection debts under $500 from credit reports?

Removing medical debts under $500 aims to improve consumer credit scores and financial well-being.

How can consumers access free credit reports through TransUnion?

Consumers can access free weekly credit reports from TransUnion through AnnualCreditReport.com until the end of 2023.

What changes were made to the reporting of unpaid medical collection debts?

The time period before unpaid medical collection debts appear on credit reports was extended from six months to one year.