In the News: Changes by Credit Reporting Bureaus Could Wipe Your Medical Debt From Your Credit Report

Medical debts compromise the credit reports of more than 23 million Americans


Up to 70% of medical debt will be removed from Americans' credit reports starting July 2022

As of July 1, 2022, about 70% of medical debts will no longer be included in Americans' credit reports, providing relief to millions.

It’s no secret that Americans are frequently strapped with crushing medical debts, but as of July, millions of consumers will see some or all that damaging information wiped from their credit reports.

The three major credit reporting agencies — Experian, Equifax, and TransUnion — announced in March that an estimated 70% of medical debt will no longer impact credit reporting.

Consumers can thank a report from the Consumer Financial Protection Bureau (CFPB) that found about $88 billion in medical bills tarnishing credit reports everywhere. Roughly 58% of bills in collections appearing on credit reports are related to medical billing, the report also found.

“When it comes to medical bills, Americans are often caught in a doom loop between their medical provider and insurance company,” CFPB Director Rohit Chopra said in a March statement. “Our credit reporting system is too often used as a tool to coerce and extort patients into paying medical bills they may not even owe.”

The report highlights how medical bills are often incurred due to unexpected emergencies and are subject to the whims of vague pricing. What’s more, consumers are unjustly burdened by insurance woes and arbitrary pricing rules. 

In other words: Consumers get saddled with outrageous medical bills when they’re at their most desperate, especially those who live with disabilities or chronic illness. These monumental costs then go to collections, where they damage credit reports and potentially limit consumers’ opportunities. 

According to the CFPB report, Black, Latinx, veteran, low-income, elderly and young adult consumers are disproportionately affected by adverse medical bills showing up on their credit reports. Research from the American Enterprise Institute shows that unpaid medical bills do not correlate with a consumer’s ability to manage their payments. 

The long-overdue decision by the major credit reporting agencies is a positive step forward for an estimated 23 million Americans struggling with medical debt. But given those agencies’ poor track record when it comes to correcting reporting errors, many of those consumers will likely be forced to join hundreds of thousands of others waiting in line waiting for their reports to be corrected.

That being said, it’s essential for consumers to know what’s currently on their credit report, as well as how to quickly and efficiently correct information reflecting most medical debt.

What are credit reporting errors?

Credit reporting errors are incredibly common mistakes made by credit reporting agencies on your credit report. They can compromise your credit score, ability to get a loan and rent or buy housing.

Between January to April 30 of 2021, 248,305 consumer reporting disputes were filed, most of them against credit reporting data, according to the CFPB. That’s an astounding 62% more consumer reporting complaints in the first six months of 2022 than the entirety of 2019. 

Common errors in credit reports include:

  • Identity errors. These are mistakes in your personal information, such as the misspelling of your name, confusing your information with someone else’s, or errors to your address or phone number.  Sometimes due to incorrect information furnished by the SSA, you might even be listed as dead on your credit report. 
  • Account errors. An account where you’ve made payments on time might be listed as late or unpaid. The account could also reflect the wrong status, like when an account says it’s open when it is actually closed.
  • Duplication errors. The same debt can appear more than once on your credit report by mistake. 

Going into July, medical debt appearing or failing to be cleared on your report will be considered an error that you must file a dispute to correct.

How can I file a dispute to have my medical debt removed from my credit report?

You’re entitled under the Fair Credit Reporting Act to have any incorrect information on your credit report corrected, including most medical debts as of July 2022. Credit agencies must remove the damaging medical debt from your background report within 30 days of your claim being filed. 

Here’s what the dispute process looks like:

  • A consumer calls the credit reporting agencies and submits a written dispute letter outlining the mistake in the report via certified mail. It’s helpful to include information or documentation that supports the claim. Consumers have to call each agency separately and file the disputes.
  • The agencies have 30 days to investigate your claim and correct any mistakes.
  • Once the information is correct, consumers are entitled to ask for a revised report for themselves and anyone who received a previous report within the last two years.
  • Consumers can also request a free copy of their report within 60 days.

Given the volume of complaints agencies are receiving since 2020, the frustration and bureaucracy of the dispute process is now more frustrating than ever. You may even be entitled to damages if you suffer adverse consequences because of misreporting or failure to correct a report.

That’s where Consumer Attorneys comes in — we can expedite the dispute process by suing consumer reporting agencies and potentially win you damages in court.

Let us know if we can help, we offer a free consultation to evaluate your case.

Contact Us

+1 877-615-1725


Related Articles



How an Equifax Coding Blunder Led to Millions of Incorrect Credit Scores Issued to Lenders

Equifax Coding Snag Led to Millions of Erroneous Credit Scores Issued to Lenders


Hyundai Capital America’s $19-Million Credit Reporting Catastrophe, Explained

Hyundai’s $19-Million Credit Reporting Catastrophe, Explained



What the F(CRA) is a Permissible Purpose?

What the F(CRA) is a Permissible Purpose?


How to Write a Dispute Letter to Credit Bureaus

How to Write a Dispute Letter to Credit Agencies

When the SSA enters an individual into its Death Master File, a special code called a deceased indicator is used to mark the consumer as dead. The indicator is then included in a consumer’s credit report, where it appears simply as “deceased.”


How to Correct a Deceased Indicator on Your Credit Report

Each year in the United States, between 7,000 and 14,000 people are surprised to learn that they are deceased according to the Social Security Administration.

A wedding ring.


There is an error on my credit report. How can Consumer Attorneys help?

Thanks to Consumer Attorneys, a client was able to recover from multiple credit report errors.

A pile of money.


Credit reporting errors strike victims when they least expect it

Consumer Attorneys has helped countless victims of credit reporting inaccuracies and is here for you.

An error showing up on a mobile phone.


What are credit reporting errors?

Your credit report can contain some mistakes

A frustrated man seeing that his credit report is affected by a mixed file error.


What is a mixed file?

A mixed file can cause your credit score to drop

A man looking at a chart on a tablet.


What’s the difference between a FICO score and a credit score?

A FICO score can actually impact your credit score.

A thumbs up.


What are considered good credit scores?

Credit scores have different rankings and meanings

A man that is upset about a credit reporting error.


Real Stories About Credit Reporting Errors

Consumer Attorneys help clients sort out credit reporting issues

An image of a coronavirus.


How has COVID-19 impacted credit reporting errors?

Amongst the many issues created by the pandemic, credit reporting mistakes are multiplying in the wake of new legislation and policy.

A picture of a clock, showing how long a dispute can take.


How Long Credit Reporting Disputes Take

It may be quicker than you think with the right partner

A report with credit cards in front of it.


What’s the difference between a credit score and a credit report?

You may use the terms "credit report" and "credit score" interchangeably, but they're very different.

Mixing or splitting a file is one of the most common errors made by credit bureaus, as well as one of the biggest headaches for consumers.


Why Is Someone Else’s Information Listed on My Credit Report?

From renting an apartment to taking out personal or business loans, credit reports play an important role in the lives of consumers. They’re often a determining factor in whether a bank or other lender makes a decision in favor of the consumer.

The picture shows a sad man who looked at his credit report.


Why the Credit Bureaus Confuse Information Between Consumers

The real problem with credit reports is the astounding number of errors!


What Does “Mixed” Mean on a Credit Report?

Sometimes a consumer’s credit report can get dragged down by dead weight ... literally.

The picture shows a fraud thief who is trying to steal information. One's Social Security number, along with an address, is the most valuable piece of information identity thieves can get their hands on.


Key Information Regarding Identity Theft

One's Social Security number, along with an address, is the most valuable piece of information identity thieves can get their hands on.

 image depicting symbols of identity theft


What are the early indicators of identity theft?

Several telltale signs can give away the fact you've been a victim of identity theft early.

A police car.


Why should you file a police report after identity theft?

Does it serve a purpose if you don’t know how to find the thief?

A home that's ready to be purchased.


How to protect your identity during the homebuying process

Six ways to secure your identity when buying a home

A doctor in a hospital.


How does medical identity theft occur?

What to look out for to make sure it doesn’t happen to you

A man stealing data.


Distinguishing credit card fraud from identity theft

The two are not the same thing

A globe featuring the United States.


The top 10 states with the most identity theft

Some states have more cases of identity theft than others

People dealing with identity theft.


What is at risk when someone steals your identity?

The dangers of identity theft

A frustrated man who had his identity stolen.


What is identity theft and how does it happen?

Identity theft is a criminal offense that damages victims’ finances and reputation

View all articles