New Changes to Credit Reports Should Benefit Consumers
On Monday, the three largest credit reporting agencies reached an agreement with the New York Attorney General to change the way consumers can dispute errors on their credit reports.
As a result, disputing a mistake on your credit report could get easier and the effects of medical debt less severe under changes being made by Equifax, Experian and TransUnion .
Eric Schneiderman, New York state’s attorney general, was satisfied with the agreement.
“The nation’s largest reporting agencies have a responsibility to investigate and correct errors on consumers’ credit reports. This agreement will reform the entire industry and provide vital protections for millions of consumers across the country,” Schneiderman said in a statement.
In the agreement, consumers who question items in their credit reports will get more information about those disputes. They will receive instructions on what to do if they disagree with an answer they receive.
The Consumer Financial Protection Bureau has also requested some changes from the credit reporting agencies. As a result, Equifax, Experian and TransUnion will try to increase the accuracy in credit reports by not reporting medical debts until 180 days have passed. That should allow time for insurance payments to be applied. In addition, they will remove previously reported medical collections that are being taken care of by insurance companies.
These changes will be rolled out in the coming months, and more changes may occur as discussions continue between the parties.