Credit Reporting Changes Expected to Increase Scores

With the Trump Administration making drastic cuts daily that negatively impact jobs and
social services, there is a glimmer of hope for millions of hard-working Americans. The
Consumer Financial Protection Bureau (CFPB) has finalized a new credit rule that will
remove approximately 49 billion dollars in medical bills from credit reports for an
estimated 15 million Americans.
The new rule prohibits lenders from using medical debt information in evaluating credit
worthiness. It goes into effect on March 17. According to the agency’s research, the
information reported by credit bureaus is often inaccurate. Research revealed that an
individual’s ability to repay medical bills is a “poor predictor” of their ability to repay
other types of loans. The stain of medical debt on an individual’s credit report has led
to thousands of mortgage applications being denied.
Under the new rule, the three major credit reporting agencies—TransUnion, Experian and
Equifax—said any medical bills under $500 will no longer appear on an individual’s
credit report.
With high medical debt being deleted from credit reports, thousands of consumers can
expect to see their scores rise by 20 points on average. The CFPB further anticipates
that this rule will lead to the approval of approximately 20,000 additional mortgages
each year for consumers currently burdened by medical debt.
Consumers are advised to be diligent in monitoring their credit reports and scores to
make sure any medical debts over $500 as well as inaccurate information is removed.
Every consumer is entitled to receive an annual credit report from the three nationwide
credit bureaus for free by requesting them over the phone, in writing or obtaining them
online from https://annualcreditreport.com or calling 877-322-8228.
Here is the contact information for the credit reporting agencies:

Equifax
Online: equifax.com/personal/credit-report-services/credit-
dispute/ 
Phone: (866)349-5191
TransUnion
Online: transunion.com/credit-disputes/dispute-your-
credit/mail-or-phone
Mail: Visit the link above for the company’s most recent
address.
Experian
Online: experian.com/disputes/main.html

Phone: (888) 397-3742.
Mail: Visit the link above or call for the company’s most recent
address

Once you receive your credit report, you can dispute errors with the appropriate
reporting agency. In some cases, your credit information may be listed with one agency
and not listed with another.
Most companies charge for providing credit scores, which is really the key to
determining your credit rating. However, you can obtain your credit scores for free
online at https://creditkarma.com.
To dispute errors on your credit profile, you will need to:

 Submit a letter to the credit bureaus, reporting company, or both
depending on your exact situation. The Federal Trade
Commission has a sample letter to assist consumers at
https://consumer.ftc.gov.
 Include in the letter, the requestor’s contact information, credit
report confirmation number, error(s) that need correction
(including account number, company name, etc.), reason for
dispute, specific data you want removed, a copy of the section
of the report where the erroneous data appears, and any
supporting data to prove your case.

You can generally expect to wait between 35=50 days for the agency to investigate your
dispute.