Rebuilding Your Credit

[2130sunshine]

Does anyone have any information about the medical debt relief act, I was researching and it seems like it is no longer in effect and now there is a proposal for the medical debt responsibilty act that states something about paying off your debt and having it removed within 45 days.... 

Does anyone know where I can find more information about these two acts??? Also I read that if you pay a collection debt, that you last date of activity restarts the 7 year process, is that correct?

[pizzadude]

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2130sunshine wrote:

Does anyone have any information about the medical debt relief act, I was researching and it seems like it is no longer in effect and now there is a proposal for the medical debt responsibilty act that states something about paying off your debt and having it removed within 45 days.... 

Does anyone know where I can find more information about these two acts??? Also I read that if you pay a collection debt, that you last date of activity restarts the 7 year process, is that correct?

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I don't have any information about the medical debt relief/responsiblity acts, but reporting of debts is covered by the Fair Credit Reporting Act ( FCRA ).   Per the FCRA, collection accounts report for 7.5 years from the DOFD of the original account, which for medical debt is usually the date the medical procedure occurred.   Paying a collection cannot reset the credit reporting time period ( CRTP ).

[PRC]

Per govtrack.com -

H.R. 2086: Medical Debt Responsibility Act of 2011

To exclude from consumer credit reports medical debt that has been in collection and has been fully paid or settled, and for other purposes.

Sponsor: Rep. Heath Shuler [D-NC11]

Status: Referred to Committee

Bill Overview

Status:

Introduced	Jun 02, 2011
Referred to Committee	Jun 02, 2011
Reported by Committee	(not yet occurred)
Passed House	(not yet occurred)
Passed Senate	(not yet occurred)
Signed by the President	(not yet occurred)
This bill or resolution was assigned to a congressional committee on June 2, 2011, which will consider it before possibly sending it on to the House or Senate as a whole.

Prognosis:

This bill has a 4% chance of being enacted. The following factors were considered:

• The sponsor is a member of the minority party. (-2%)
• There is at least one cosponsor from the majority party and one cosponsor outside of the majority party. (+2%)
• A cosponsor in the minority party has a high leadership score. (+3%)
• A cosponsor is the ranking member of a committee to which the bill has been referred. (+9%)

Just 4% of all House bills in 2009–2010 were enacted.

Bill Text (Important Points):  IN THE HOUSE OF REPRESENTATIVES June 2, 2011

To exclude from consumer credit reports medical debt that has been in collection and has been fully paid or settled, and for other purposes.

SEC. 3. AMENDMENTS TO FAIR CREDIT REPORTING ACT.

(a)    Medical Debt Defined- Section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a) is amended by adding at the end the following new paragraph:

(b)     (b) Exclusion for Paid or Settled Medical Debt- Section 605(a) of the Fair Credit Reporting Act (15 U.S.C. 1681c(a)) is amended by adding at the end the following new paragraph:

‘(7) Any information related to a single fully paid or settled medical debt in an amount of $2,500 or less that had been characterized as delinquent, charged off, or in collection which, from the date of payment or settlement, antedates the report by more than 45 days.’.