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If I pay medical debt off, will it be removed from my three credit reports automatically now? I had read about new legislation and was wondering if it has gone into effect or if that was just rumors. Thanks!
There is a consent agreement executed between the office of the AG of several states and the big-3 CRAs that includes two provisions relating to medical collections.
First, they will not be posted by the CRA until they are at least 6 months from DOFD, and second, if paid by medical insurance, they will be removed.
The CRAs have also published that consent agreement under the title "National Consumer Assistance Plan."
Note that the key provision is that the debt was paid by a medical insuror,and not simply paid.