Too often, patients receive bills filled with hard-to-interpret codes and outright errors — where a mistake can add thousands of dollars in costs but require weeks of persistence to unravel.
Over the past decade, research from the Consumer Financial Protection Bureau (CFPB) and independent experts has demonstrated that medical bills should be treated differently than other kinds of debt.
If the CFPB finalizes the rule as proposed, we estimate this action will remove $49 billion of medical debts that unfairly lower the credit scores of 15 million Americans.
We expect that people affected by the change will see their credit scores rise by an average of 20 points and that lenders will be able to approve approximately 22,000 additional safe mortgages every year.
States like Colorado and New York have reached similar conclusions and passed laws banning all medical debt from appearing on credit reports.
Companies that produce credit scoring models, like VantageScore and FICO, which are financially incentivized to assess the predictive value of medical debt, have also reduced their reliance on this junk data.
The original article contains 676 words, the summary contains 161 words. Saved 76%. I’m a bot and I’m open source!
This is the best summary I could come up with:
Too often, patients receive bills filled with hard-to-interpret codes and outright errors — where a mistake can add thousands of dollars in costs but require weeks of persistence to unravel.
Over the past decade, research from the Consumer Financial Protection Bureau (CFPB) and independent experts has demonstrated that medical bills should be treated differently than other kinds of debt.
If the CFPB finalizes the rule as proposed, we estimate this action will remove $49 billion of medical debts that unfairly lower the credit scores of 15 million Americans.
We expect that people affected by the change will see their credit scores rise by an average of 20 points and that lenders will be able to approve approximately 22,000 additional safe mortgages every year.
States like Colorado and New York have reached similar conclusions and passed laws banning all medical debt from appearing on credit reports.
Companies that produce credit scoring models, like VantageScore and FICO, which are financially incentivized to assess the predictive value of medical debt, have also reduced their reliance on this junk data.
The original article contains 676 words, the summary contains 161 words. Saved 76%. I’m a bot and I’m open source!