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Passage Of Debt Collection Bill Could Be A ‘Slippery Slope’ For Lenders

Collection Industry News

In a letter sent to the leaders of the House and Senate , CUNA President/CEO Jim Nussle stated his objections to section 403 of the bill, which would amend the Fair Credit Reporting Act to prohibit credit scoring models from treating certain medical debt information on consumerscredit report as a negative factor.

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New rule would eliminate medical debt from credit reports

Collection Industry News

In 2022, the three largest credit bureaus — TransUnion, Equifax and Experian — started removing paid medical debts from consumerscredit reports. FICO® and Vantage Score, the two major credit scoring companies, have also decreased the degree to which medical bills impact credit scores.