It’s not every day that you hear good news about your credit report. But this Monday was the American consumer’s lucky day! Equifax, Experian, and TransUnion, the three major credit reporting bureaus, announced this week that they are overhauling the credit reporting process. They will be instituting some major changes that will benefit the consumer, changes like making it easier to dispute an error and not blaming consumers for late payments made by their health insurance company. It’s like they’re finally listening to years and years worth of complaints!
Plans to improve the credit reporting process were lengthy, but let me break it down to the important stuff for you.The changes include:
– Medical debts won’t be reported until after 180 days, so that if an insurance company is late making a payment the consumer won’t be personally penalized. Additionally, the credit reporting agencies will remove previously reported medical collections that have been or are in the process of being paid by insurance.
– Credit reporting agencies will stop the reporting of debts that the consumer did not agree to pay by signing a contract or agreement. So things like tickets or fines will no longer show on your credit report.
-Consistent standards will be enforced by the credit reporting agencies to entities that submit data for inclusion on credit reports. All three credit bureaus will enforce similar standards.
– If you get a copy of your annual free credit report, dispute information on it, and the dispute results in a change to that item, you will no longer have to wait a year to get a new copy of your credit report. You will be able to get a second one right away.
– Consumers who dispute an item on their credit report will receive info with the results of their dispute with further steps they can take if they’re not satisfied with the outcome.
– There will be more free educational material available on www.annualcreditreport.com to help consumers understand their credit reports.
– A group will be formed to regularly review the data collecting process for credit reports to help ensure consistency and fairness.
Sounds like good news to me. Thanks, credit reporting agencies! For more information, check out this spot that was featured on the NBC Nightly News.