Today’s tidbit has to do with possible changes to how medical bills appear, and more importantly, disappear from your credit report. There is currently being discussed something called the Medical Debt Bill. (Known as the Medical Debt Responsibility Act) What this means to you is that if you are a consumer haunted by ‘paid’ medical debts that were once in collections…the new bill would require that once paid these collection accounts be ‘scrubbed’ from your credit report!
There are some lenders in some situations that once upon a time may have been able to work around medical debts on a credit report, especially with proof of payment of said debts, but times are tighter now and that is not always the case. Some consumers, even with proof of paid debt, have been denied mortgage loans because of collection accounts on these very same medical debts. This bill would put an end to that practice by setting a 45day timelimit in which the credit report must be scrubbed of these debts, once paid.
Translation is that this could be good for the housing market as a whole when it is translated into more mortgage approvals for more buyers!
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