The Consumer Financial Protection Bureau (CFPB) has released a new report showing a significant decline in medical collection accounts on credit reports between 2018 and 2022. The report suggests that debt collectors are moving away from reporting medical bills to credit bureaus, and that internal credit bureau rules regarding medical bill reporting may also be a factor. The report also highlights concerns regarding the verification of consumer data, which may be contributing to the decline in medical collection tradelines.
According to the CFPB, medical collection tradelines declined by 37 percent between 2018 and 2022. This decline is significant and suggests that debt collectors may be changing their practices when it comes to medical bill reporting. The CFPB's report points to several potential factors that may be contributing to this decline.
One potential factor is recent internal credit bureau rules regarding medical bill reporting. These rules may be making it more difficult for debt collectors to report medical bills to credit bureaus. Additionally, some debt collectors may be choosing to prioritize other types of debt over medical debt, as it may be more difficult to collect.
Another potential factor highlighted in the CFPB report is the verification of consumer data. Debt collectors may be finding it more difficult to verify consumer data when it comes to medical debt. This may be due to a lack of information from healthcare providers or a lack of documentation from consumers. Without accurate information, debt collectors may not be able to report medical debt to credit bureaus.
Despite the decline in medical collection tradelines, the CFPB estimates that as of 2021, there was approximately $88 billion in medical bills on consumer credit reports. This highlights the ongoing issue of medical debt in the United States, and the impact it can have on consumers' credit scores and financial wellbeing.
The CFPB is closely monitoring medical billing and collection practices, and is working to ensure that consumers are treated fairly and appropriately. The agency has taken action in the past to address issues related to medical debt, including taking action against debt collectors who engaged in unfair, deceptive, or abusive practices.
In conclusion, the CFPB's new report on medical collection tradelines highlights the ongoing issue of medical debt in the United States, and the challenges that debt collectors face when it comes to reporting medical bills to credit bureaus. While the decline in medical collection tradelines may be concerning, it is important to remember that there is still a significant amount of medical debt on consumer credit reports. The CFPB's ongoing monitoring of medical billing and collection practices is critical to ensuring that consumers are treated fairly and appropriately, and that debt collectors are held accountable for their actions.
If you face medical collections issues, you should discuss your legal rights with a Las Vegas Consumer Protection Attorney.