A recent study by the Consumer Financial Protection Bureau exposed new risks for consumers when it comes to medical bills. According to the report, if a consumer has a medical bill sent to collections and then the bill shows up on the credit report (i.e. the hospital or doctor did not report the bill to the credit report before it ever went to collections), their credit score will be excessively penalized. The real whammy – this is how it happens a majority of the time. Most doctors and hospitals don’t want to waste the time to report to the credit bureaus.
On top of this, the Federal Reserve Board recently found that over half of all collections on credit reports are for medical bills, which means that medical bills occupy a disproportionate amount of our credit reports and also have a disproportionately negative affect on our credit.
The moral of the story: medical bills can continue to be a pain in your side long after you are healthy. Don’t let your healthcare hurt your credit. Consult with a debt settlement attorney who can defend your rights and negotiate forreductions in your medical bills.
Author: Kevin Fallon McCarthy