Passage Medical Debt Bill Could Help Credit Scores

WASHINGTON – Sept. 7, 2012 – A bill working its way through the U.S. Congress could open the door to homeownership for those people with lower credit scores, providing the credit ding came from a medical problem that they have since paid off.

If the Medical Debt Responsibility Act passed, consumers would have all bad credit information removed from their score within 45 days of payment. Currently, a problem paying medical bills can lower a potential homebuyer’s credit score even years later.

Terry W. Clemans, executive director of the National Credit Reporting Association Inc. (NCRA), calls it a “common sense bill that everyone should be able to embrace, as consumers typically don’t ‘choose’ to frivolously over-consume medical services.”

A House version of the bill passed 336-82 last year, but the Senate didn’t take it up. A bipartisan letter from 20 members of the House Financial Services Committee has encouraged that group to reconsider the bill (HR 2086) this year.

The Senate version of the bill (S 2149), however, doesn’t have as much momentum.

Most major consumer groups and many real estate associations support passage.

© 2012 Florida Realtors®