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Please read this and comment…
Posted on July 31st, 2009 No commentsAfter years of witnessing a grossly unfair situation for the American consumer concerning their medical debt, I took my findings to Congress. My proposal amends the Fair Credit Reporting Act and establishes the proper credit rating for consumers who settle their medical debt that has gone to collection.
I provided the real time research and consumer insight that exposed a pressing economic crisis not mentioned in healthcare reform. Representative Kilroy and I collaborated on this simple solution that would have an immediate economic impact and no financial burden to the American tax payer.Medical debt weakens the American consumer’s chance to qualify for mortgages and auto loans, obtaining reasonable interest rates on credit cards, and from getting lower insurance premiums.The outcome for this Bill to become Law represents a big win for the consumer, the physician and hospitals and the federal government.
U.S. Rep. Mary Jo Kilroy
15th Congressional District of OhioFOR IMMEDIATE RELEASEThursday, July 30, 2009Contact: Paul Tencher, Communications Director202-225-2015614-357-0230Kilroy: Relief from Health Care Debt on the Way to ConsumersU.S. Rep. Mary Jo Kilroy submits the Medical Debt Relief Act of 2009 to wipe paid and settled debt incurred through health care from credit recordsWASHINGTON—Over 28 million Americans were harassed by debt collectors in 2007 because of health care bills, but a new piece of legislation from U.S. Rep. Mary Jo Kilroy would end the practice of using that debt even after it is settled to affect consumers’ credit scores. The Medical Debt Relief Act of 2009 would prohibit medical debt paid off or settled as a criteria for credit bureau’s to determine approvals for mortgage rates and other consumer purchases.Many of these debts arise from disputes with health insurance companies. The health insurance industry sends out debt for collection for as little as $1 dollar that can costs consumers thousands of dollars when buying a home or a car.“Debt from medical expenses isn’t like buying a big screen television on a credit card, but it is being treated in exactly that way by the credit bureaus even when it is paid off. People shouldn’t have their credit worthiness suffer because they got sick or injured,” Kilroy said. “Health insurance reform is essential to achieving a stable health care system that gives Americans peace of mind and it is also vitally important that we deal with medical debt that is hurting consumers and our economy. It is outrageous that bills for as little as a one dollar dispute with insurance companies are driving up the mortgages of my constituents.”Medical debt affects roughly 72 million Americans each year and according to a Commonwealth Fund study 28 percent of Americans pay that debt over time. Though some of those Americans that incur medical debt large and small find a way to pay off the debt or settle, the adverse effects on their credit score remain. Kilroy’s bill would prohibit paid or settled medical debt from affecting credit scores and force credit bureaus remove the debt within 30 days.While health care costs have increases, so have medical debt. In fact, 60 percent of those with medical bills and debts were insured at the time they assumed the debt. This debt has presented challenges to those consumers trying to buy a home. According to mortgage originators and services, even one negative medical collection mark on a credit score can drop a consumer from Tier 1 to Tier 2 of the credit rating system. This could cost the consumers thousands of dollars in percentage points and closing premiums.The Medical Debt Relief Act of 2009 is co-sponsored by chairman of the House of Representatives Committee on Financial Services Subcommittee on Financial Institutions and Consumer Credit Rep. Luis Gutierrez, House Democratic Leadership Deputy Whip Rep. Jan Schakowsky, Rep. Tom Perriello and Rep. Walter Minnick, Rep. Joe Baca, Rep. Jackie Speier, Rep. Maurice Hinchey, Rep. Keith Ellison, Rep. Gwen Moore, Rep. Marcia Fudge and Rep. Marcy Kaptur .Medical Debt Relief Act – FAQWhat is the problem?Medical debt collections that has been completely paid off or settled can still significantly damage a consumer’s credit score for years. As a result, consumers can be denied credit or pay higher interest rates when buying a home or obtaining a credit card.Why is medical different from other type of debt?Medical debt is unique. Americans don’t choose when accidents happen or when illness strikes. Medical debt collection issues affect both insured and uninsured.Furthermore, according to credit evaluators, medical debt collections are more likely to be in dispute, inconsistently reported, and of questionable value in predicting future payment performance because it is atypical and non-predictive.How big is the problem?According to The Commonwealth Fund, medical bill problems or accrued medical debt affects roughly 72 million working-age adults in American. For 2007, 28 million working-age American adults were contacted by a collection agency for unpaid medical bills.What does the Consumer Medical Debt Relief Act do?The “Medical Debt Relief Act of 2009” would amend the Fair Credit Reporting Act to prohibit consumer credit agencies from using paid off or settled medical debt collection in assessing a consumers credit worth.The creditor or credit rating agency would have thirty (30) days from the date the medical debt collection is paid off or settled to expunge the collection from the consumer’s record.Leave a reply
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Medical Debt Relief Act of 2009 Building Momentum
Posted on July 31st, 2009 No commentsLeave a reply
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Friday, July 31st
Posted on July 31st, 2009 No commentsMore of a Depreciation Appreciation: $4,500 for a $30,000 car, why only $8,000 for a $200,000 house?
Washington scrambles to avoid Cash for Clunkers suspension - CNN Money
$2 Billion to keep ‘Cash for Clunkers’ - Bloomberg
FHA Announces plan to modify troubled mortgages - Seattlepi
Homebuyer tax credit fraud - CNN Money
Are Mortgage Servicers Like Evil Credit Card Companies? - the Atlantic
Don’t carry your mortgage into retirement - Philly.com
Fixed-rate cards dwindling - NJ.com
Credit cards a plastic profit machine - thestreet.com
New Report Reveals Truth Behind Excessive Credit Card Debt - PNN online
Your creditors may negotiate, but beware of drawbacks - Chicago Tribune
10 ways to use your credit card right - The Economic Times
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Thursday, July 30th
Posted on July 30th, 2009 No commentsTHE NEXT GREAT BAILOUT: SOCIAL SECURITY - CNN Money
Home Prices Rise Across U.S. - WSJ
More retailers say YES to food stamps - USA TODAY
Get retirement savings going the right direction - Dallas Morning News
Unpaid property taxes hit localities - USA Today
Buying? Selling? Don’t undervalue the home - CNN Money
Initial Jobless Claims in US Increase - Bloomberg
Mortgage Loan Changes - Newsday
Foreclosures: How Bad Is YOUR City? - CNN Money
Housing Market’s Balancing Act - Washington Post
3 Things You Should Know About Upcoming Credit Card Changes - SunSentinel
Credit Card Checklist - Are you headed for trouble? - Examiner
Treasury finally gets tough on banks - CNN Money
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Is it possible to raise my credit score over 100 points in a year?
Posted on July 30th, 2009 1 comment
Hi,
I pulled my credit from your website. I did the 1 report about a month ago it was a 583. I just did the 3 reports and it was 515. I had a question on the degoratory information; it has the same account number it has two amount past due. Can you tell me what this means?
I plan on getting your secured credit card this week. Is it possible to raise my credit over 100 points in a year? Also if I pay of the derogatory items will it help the scores?
Thanks,
DannyHey Danny,
Your credit report is like your fingerprint. It is unique to you and you only. Revolving credit (credit cards) weigh heavily on your score, because they take more responsibility. If you do not have anything currently reporting on your report (i.e. you have no open credit available) then you may be able to increase your score significantly over the next 12 months. Paying off derogatory items may assist with the increase in score. Your best bet would be to contact my office and speak with Steve Bailey. He can run simulations on your credit report and give you actions that will maximize on your ability to increase your scores over the next 12 months. 1-800-EXPRESS.
Rodney
One response to your post “Is it possible to raise my credit score over 100 points in a year?”
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Is it possible to refiance home while in chapter 13?
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