>> IF YOU'VE GOT MEDICAL DEBT,
IT MIGHT BE GOING AWAY. THE
WALL STREET JOURNAL BREAKING
THE STORY THAT THE 3 MAJOR
CREDIT REPORTING FIRM EQUIFAX
EXPERIAN AND TRANSUNION. WE'RE
MAKING SWEEPING CHANGES TO HOW
THEY REPORT MEDICAL DEBT IN
COLLECTIONS, BEGINNING THIS
SUMMER. THE JOURNAL'S CONSUMER
LENDING REPORTER ANNA MARIA
AND RIHANNA SAYS HERE ANDREA,
THANK YOU FOR BEING WITH US.
SO YOU'RE REPORTING THESE
CHANGES WILL REMOVE NEARLY 70%
OF MEDICAL DEBT FROM CREDIT
REPORTS THAT IS SERIOUS AND
MISSUS DE PICK AND STICK
AROUND FOR UP TO 7 YEARS. EVEN
AFTER THE COLLECTION AGENCIES
ARE PAID OFF. TELL US MORE
HERE. WHAT IS THE PLAN TO TRY
TO GIVE CONSUMERS AS CLOSE TO
A CLEAN SLATE AS POSSIBLE.
>> THIS IS A BIG CHANGE.
ESSENTIALLY WE'RE TALKING
ABOUT IS THE REMOVAL 10'S OF
BILLIONS OF DOLLARS OF MEDICAL
IN COLLECTIONS AND IT CALLS
INTO 2 BUCKETS. SO THE FIRST
CHANGES WILL ROLL OUT IN JULY
WHEN THE 3 LARGEST CREDIT
REPORTING FIRMS TO THE U.S.
EXPERIAN AND TRANSUNION WILL
CHANGE HOW THEY HANDLE MEDICAL
DEBT IN COLLECTIONS THAT
CONSUMERS HAVE PAID. SO
BASICALLY YOU HAVE UNPAID
BILLS FROM THE HOSPITAL OR
ANOTHER MEDICAL PROVIDER.
THEY'RE SENT TO COLLECTIONS
FOR AND THEN YOU END ACTUALLY
PAYING THOSE BILLS. WILL THE
WAY THAT THINGS CURRENTLY WORK
RIGHT NOW. THE CREDIT
REPORTING SYSTEM DOES THAT
COUNT AND COLLECTIONS STILL
REMAINS ON YOUR CREDIT REPORT
FOR UP TO 7 YEARS. WOULD
REMOVE THESE MEDICAL. THAT'S
FROM THE CREDIT REPORTS THAT
WILL LAST SO IT WILL ALL BE
CHANGES TO UNPAID MEDICAL FOR
EXAMPLE, NEXT YEAR. SOME POINT
DURING THE 1ST HALF OF NEXT
YEAR. BECAUSE REPORTING FIRMS
ARE GOING TO REMOVE UNPAID
MEDICAL OF LESS THAN $500 THAT
THRESHOLD COULD RISE AS SOME
OF THE DETAILS AND HERE ARE
STILL GETTING IRON THERE WILL
ALSO BE A DELAY CREDIT
REPORTING FIRMS WILL GIVE
CONSUMERS PEOPLE HAVE UP TO
ONE YEAR FROM WHEN THEY'RE ON
PETE MEDICAL. THAT'S GOING TO
COLLECTIONS TO PAY IT TO TRY
TO SORT IT OUT. ESSENTIALLY
GIVING HIMSELF MORE TIME
BEFORE IT ENDS UP ON THE
CREDIT REPORT.
>> I MEAN, WE'RE TALKING ABOUT
SO MUCH MONEY HERE. MEDICAL
DEBT IS A HUGE BURDEN FOR A
LOT OF AMERICANS. A LOOK AT
THE NUMBERS. AN ESTIMATED
88 BILLION DOLLARS IN MEDICAL
BILLS ARE IN 43 MILLION CREDIT
REPORTS ACCORDING TO THE
CONSUMER FINANCIAL PROTECTION
BUREAU. WALK US THROUGH WHAT
CHANGES FOR THESE PEOPLE IS
THAT KIND OF GET GOES AWAY. I
MEAN, WHAT ARE WHAT DOES IT
PREVENT THEM FROM WHAT MIGHT
IT OPEN UP FOR PEOPLE WHO MAY
HAVE HAD THIS ON THEIR CREDIT
REPORTS.
>> THE MEDICAL REPORT IS A
HUGE BURDEN FOR MANY AMERICANS
IN THE SAME WAY THAT CREDIT
REPORTS INCLUDED WHETHER WE
PAY OUR CREDIT CARDS TIME. OUR
LOANS OR MORTGAGES ON TIME
THEY INCLUDE THIS INFORMATION
TO THE NEGATIVE MARK,
ESSENTIALLY WHAT IT'S TELLING
THE LENDER WHEN A CONSUMER
GOES TO APPLY FOR NEW CREDIT
IS THAT THIS PERSON HAS AND
THE COUNT IN COLLECTIONS THAT
CAN. BASICALLY INCLUDES THE
LENDER TO DENY THE CONSUMER
FOR TO CHARGE MORE IN INTEREST
THAN THEY OTHERWISE WOULD
REMOVE ALL OF THESE NEGATIVE
THAT COUNTS. BUT ESSENTIALLY
IT EASIER FOR PEOPLE TO GET
APPROVED FOR A CREDIT OR TO
GET APPROVED FOR A CREDIT.
BETTER TERM.
>> THE 3 FIRMS RELEASED A
JOINT STATEMENT SAYING THESE
CHANGES ARE ANOTHER STEP OR
TAKING TOGETHER TO HELP PEOPLE
ACROSS THE UNITED STATES FOCUS
ON THEIR FINANCIAL AND
PERSONAL WELL-BEING AS AN
INDUSTRY. WE REMAIN COMMITTED
TO HELPING DRY FAIR AND
AFFORDABLE ACCESS TO CREDIT
FOR ALL CONSUMERS. THEY'RE
ALSO TRYING TO APPEASE THE
CONSUMER FINANCIAL PROTECTION
BUREAU ACCORDING TO PEOPLE
FAMILIAR WITH THE MATTER. TELL
US MORE ABOUT THAT SIDE OF
THIS.
>> THE CFPB UNDER ITS CURRENT
DIRECTOR ROHIT HAS REALLY HARD
LINE AGAINST THE CREDIT
REPORTING FIRMS. IT'S MADE THE
CREDIT REPORTING INDUSTRY THE
PRIORITY AND SPECIFICALLY WHAT
IT'S BEEN FOCUSED ON IS OURS
AND PEOPLE'S CREDIT REPORTS
AND HOW FAR DO CREDIT
REPORTING FIRMS GO WHEN TRYING
TO FIX POWERS THAT ARE POINTED
OUT TO THEM BY CONSUMERS
EARLIER IN MARCH THE CFPB SAID
THAT THEY PLAN TO PULL CREDIT
REPORTING FIRMS ACCOUNTABLE.
WE'RE NOT TAKING ENOUGH ACTION
AGAINST COMPANIES THAT RONI US
MEDICAL DEBT. SO MEDICAL DEBT
AND THE HOURS ARE ASSOCIATED
WITH THEM UP PEOPLE'S CREDIT
REPORTS ARE PIECE OF THE
SCRUTINY FROM THE SEA. IT CAN
BE, WHICH IS CURRENTLY
INVESTIGATING OFF CREDIT
REPORTING FIRM EQUIFAX
EXPERIAN ANDRANSUNION WITH
REGARDS TO HOW WE HANDLE
CONSUMER DISPUTES PERTAINING
TO HOURS THAT PEOPLE FIND ON
THEIR CREDIT REPORTS. HOW THE
CREDIT REPORTING FIRMS ABOUT
AND TRY TO GET MOVED FROM
THOSE FILES AND REVIEWS ARE
HUGE CHANGES THAT HOPE. IT
HELPS A LOT OF PEOPLE WHO HAVE
BEEN STRUGGLING TO BORROW
MONEY ARE STRUGGLING GET THIS
DEBT OFF THEIR CREDIT REPORTS.
THANKS SO MUCH FOR SHARING