Latest news with #creditreporting
Yahoo
6 days ago
- Business
- Yahoo
Your credit score could be negatively impacted by this controversial court ruling about medical debt
Last Friday, a federal judge axed a Biden-era rule from the Consumer Financial Protection Bureau (CFPB) that would have prohibited consumer credit reporting agencies from including certain medical debts on consumer credit reports. The Platinum Card is about to change. Amex's new fast-format airport lounge might be a sneak preview GENIUS Act update: What's happening with the stablecoin crypto vote? Managers think employees should take a break from work—but they don't promote the ones who do The CFPB rule amended a Fair Credit Reporting Act (FCRA) regulatory exception that allowed creditors to obtain and use information on medical debts. The rule had been finalized shortly before the Biden administration left office and was set to take effect on March 15. However, legal challenges delayed its start date. The rule prohibited creditors from considering medical information when determining credit eligibility and restricted credit reporting agencies from including certain types of medical debt information in consumer credit reports. Medical debt will stay on credit reports On July 11, 2025, U.S. District Judge Sean Jordan of the Eastern District Court in Texas reversed the Biden-era rule. In his opinion, Jordan, a Trump appointee, said that the court found that rule exceeded the CFPB's authority under the FCRA. The federal lawsuit was filed on January 7, the same day the Biden-era rule had been finalized. In the legal complaint, the Cornerstone Credit Union League and the Consumer Data Industry Association asserted that the rule violated the law and that only Congress had the authority to make such changes. The Trump-era CFPB, along with acting director Russell Vought, joined the lawsuit on April 30, with the agency asking the court to vacate the rule. In response to the ruling, Senate Democrats led by Raphael Warnock of Georgia wrote a letter to Vought asking for an explanation about the reversal. 'Medical debt collections information is often inaccurate, and studies show that it is not useful in determining a consumer's ability to repay other debts,' the senators wrote. Fast Company reached out to CFPB for comment. Court order impacts millions of Americans with medical debt CFPB research found that a medical bill on a credit report isn't a good indicator of a person's ability to repay a loan. Research also showed that medical debt on credit reports contributed to mortgage application denials for loans that consumers would have been able to afford. In its January announcement, the CFPB stated that the rule would remove an estimated $49 billion in medical bills from credit reports and affect approximately 15 million Americans. It added that people with medical debt on their credit reports could see an average boost of 20 points on their score. However, now that the rule has been reversed, debt will remain on consumer credit reports, and creditors are still allowed to consider medical debt when making credit decisions. This post originally appeared at to get the Fast Company newsletter: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fast Company
7 days ago
- Business
- Fast Company
Your credit score could be negatively impacted by this controversial court ruling about medical debt
Last Friday, a federal judge axed a Biden-era rule from the Consumer Financial Protection Bureau (CFPB) that would have prohibited consumer credit reporting agencies from including certain medical debts on consumer credit reports. The CFPB rule amended a Fair Credit Reporting Act (FCRA) regulatory exception that allowed creditors to obtain and use information on medical debts. The rule had been finalized shortly before the Biden administration left office and was set to take effect on March 15. However, legal challenges delayed its start date. The rule prohibited creditors from considering medical information when determining credit eligibility and restricted credit reporting agencies from including certain types of medical debt information in consumer credit reports. Medical debt will stay on credit reports On July 11, 2025, U.S. District Judge Sean Jordan of the Eastern District Court in Texas reversed the Biden-era rule. In his opinion, Jordan, a Trump appointee, said that the court found that rule exceeded the CFPB's authority under the FCRA. The federal lawsuit was filed on January 7, the same day the Biden-era rule had been finalized. In the legal complaint, the Cornerstone Credit Union League and the Consumer Data Industry Association asserted that the rule violated the law and that only Congress had the authority to make such changes. The Trump-era CFPB, along with acting director Russell Vought, joined the lawsuit on April 30, with the agency asking the court to vacate the rule. In response to the ruling, Senate Democrats led by Raphael Warnock of Georgia wrote a letter to Vought asking for an explanation about the reversal. 'Medical debt collections information is often inaccurate, and studies show that it is not useful in determining a consumer's ability to repay other debts,' the senators wrote. Fast Company reached out to CFPB for comment. Court order impacts millions of Americans with medical debt CFPB research found that a medical bill on a credit report isn't a good indicator of a person's ability to repay a loan. Research also showed that medical debt on credit reports contributed to mortgage application denials for loans that consumers would have been able to afford. In its January announcement, the CFPB stated that the rule would remove an estimated $49 billion in medical bills from credit reports and affect approximately 15 million Americans. It added that people with medical debt on their credit reports could see an average boost of 20 points on their score. However, now that the rule has been reversed, debt will remain on consumer credit reports, and creditors are still allowed to consider medical debt when making credit decisions.
Fast Company
7 days ago
- Business
- Fast Company
You credit score could be negatively impacted by this controversial court ruling about medical debt
Last Friday, a federal judge axed a Biden-era rule from the Consumer Financial Protection Bureau (CFPB) that would have prohibited consumer credit reporting agencies from including certain medical debts on consumer credit reports. The CFPB rule amended a Fair Credit Reporting Act (FCRA) regulatory exception that allowed creditors to obtain and use information on medical debts. The rule had been finalized shortly before the Biden administration left office and was set to take effect on March 15. However, legal challenges delayed its start date. The rule prohibited creditors from considering medical information when determining credit eligibility and restricted credit reporting agencies from including certain types of medical debt information in consumer credit reports. Medical debt will stay on credit reports On July 11, 2025, U.S. District Judge Sean Jordan of the Eastern District Court in Texas reversed the Biden-era rule. In his opinion, Jordan, a Trump appointee, said that the court found that rule exceeded the CFPB's authority under the FCRA. The federal lawsuit was filed on January 7, the same day the Biden-era rule had been finalized. In the legal complaint, the Cornerstone Credit Union League and the Consumer Data Industry Association asserted that the rule violated the law and that only Congress had the authority to make such changes. The Trump-era CFPB, along with acting director Russell Vought, joined the lawsuit on April 30, with the agency asking the court to vacate the rule. In response to the ruling, Senate Democrats led by Raphael Warnock of Georgia wrote a letter to Vought asking for an explanation about the reversal. 'Medical debt collections information is often inaccurate, and studies show that it is not useful in determining a consumer's ability to repay other debts,' the senators wrote. Fast Company reached out to CFPB for comment. Court order impacts millions of Americans with medical debt CFPB research found that a medical bill on a credit report isn't a good indicator of a person's ability to repay a loan. Research also showed that medical debt on credit reports contributed to mortgage application denials for loans that consumers would have been able to afford. In its January announcement, the CFPB stated that the rule would remove an estimated $49 billion in medical bills from credit reports and affect approximately 15 million Americans. It added that people with medical debt on their credit reports could see an average boost of 20 points on their score. However, now that the rule has been reversed, debt will remain on consumer credit reports, and creditors are still allowed to consider medical debt when making credit decisions.
Yahoo
03-07-2025
- Business
- Yahoo
What is a credit card charge-off?
A charge-off is a debt that has gone unpaid for a sufficient amount of time and is deemed uncollectible by the creditor. Charge-offs do not erase your debt, and you are still responsible for paying it. It may be handed over to a debt collector and can stay on your credit report for up to seven years. It is best to avoid charge-offs, and if you are struggling to make payments, reaching out to your creditor for a hardship program may be a helpful solution. The language used in credit reporting can often be confusing to consumers. The term 'charge-off' can be one of those somewhat baffling terms. In this guide, we'll discuss what credit card charge-offs are and what they mean for your credit reports and scores. A charge-off is a debt that has gone continuously unpaid for a sufficient amount of time — usually around 120 to 180 days after your account has become delinquent — and that the creditor has given up on trying to collect. Up to this point, the account has counted as an asset on the creditor's balance sheet. When it is deemed uncollectable, it can no longer be counted as an asset and is 'charged-off.' While that may sound like the creditor has tossed out your debt, that's not the case. The write-off is purely an accounting function that applies only to the company's balance sheet, not your debt. You still owe the bill, and they still expect you to pay it. In a word, badly. Charge-offs, by their nature, mean that you haven't paid your bills. Payment history is the most influential factor in FICO scoring and accounts for 35 percent of your total score. Charge-offs usually happen after about six months of non-payment. So, for every month the account gets further behind, your score takes another hit. By the time a charge-off happens, your credit score will have significant damage — even if you had a good score to begin with. Yes. Once an account is charged-off, your debt will likely be handed over to a debt collector. If that happens, your credit report will reflect a zero balance on the charge-off, probably with a note saying 'sold to' or 'transferred to' and the name of the collection agency. You'll also have a new line called 'collections' that shows the balance due, a note on the account saying 'transferred from' or 'sold to' and the name of the collection agency. Keep in mind: A charged-off balance does not relieve you of your responsibility to pay. It may change who you have to pay, but it does not erase your debt or the fees. Plus, interest may continue to accrue. As long as there is an amount listed under the charge-off, you can contact the original creditor to make payment arrangements. But once it moves to collections, you will likely have to work with the collector. Also, you should know that once a charge-off happens, the debt will often remain on your credit report for up to seven years after the date of the original or first delinquency, whether you pay it off or not. The same is true of collections, which are treated as an extension of your loan from the original creditor and will usually be deleted at the same time in seven years. No matter what, though, you will still owe the money. Apart from the fact that you're legally responsible for your debt, there are also potential practical benefits to paying off a charged-off debt. While paying a charge-off won't erase it from your credit report, it will change the charge-off status to 'paid.' This is still a derogatory mark, but some future lenders may look more favorably at a charge-off paid notation. If your debt has been charged-off and sold to a collections agency, they may contact you through collections calls and letters or take legal action against you. Paying off the debt can stop debt collectors from taking further action. You should also keep in mind the statute of limitations on debt in your state, as well as your rights when dealing with debt collectors under the Fair Debt Collection Practices Act. You will probably still be able to get a credit card after a charge-off, but you may receive a higher interest rate, and your options may be limited depending on how low your score is. There is no law requiring creditors to offer you credit. Each lender will look at your situation from their own point of view and risk tolerance. What they decide to offer you — if anything at all — is totally up to them. If all else fails, you can apply for a secured credit card to get you back in the credit card game. These cards look and function the same as any other credit card, but they're easier to get because you give a cash deposit as collateral upfront. If you must go this route, be sure to choose a secured card that reports to the credit bureaus so that the work you do to improve your credit standing is noted. As with all things credit reporting and score-related, getting positive data onto your file after you have done some damage is the best way to rebuild your credit. This starts with paying all your bills on time, every time. Here are some additional ways to begin building your credit score: The best way, of course, to undo any damage to your credit score is to figure out a way to repay any charge-offs you have. Again, even if it still counts against you for a while, future lenders will see that you have been working to make it right. Work to reduce your credit utilization to below 30 percent. The lower the usage amount, the better for your score. Don't close old credit card accounts unless you must. Length of credit history accounts for 15 percent of your FICO score. Create a budget and stick to it. If you are able, consider taking on secondary income, such as a side hustle, small business or additional work to support the funds going toward paying off any debt. Learn more: Credit expert Ted Rossman explains how to raise your credit score without going into debt. If at all possible, you should avoid charge-offs and the resulting collections. If you need help paying your credit card bill, don't wait to reach out to your creditor and ask about a hardship program. Although that is generally a short-term solution, it could be the answer that will keep you from facing a charge-off in the future. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-07-2025
- Business
- Yahoo
How to delete your Experian account
Deleting your Experian account removes access to features like credit monitoring, FICO Score updates and identity theft protection, but your credit report and score remain intact. You can cancel your Experian membership online or by phone. Downgrading to a free Experian account allows you to maintain access to basic features without paying monthly fees. With features like daily FICO Score updates, credit monitoring alerts and identity theft protection, your Experian account can be a powerful tool for managing your credit. However, if you no longer use these services or you're looking for a way to cut back on monthly expenses, you might consider deleting your account. Before deciding to cancel your account, know which features you keep with a free account and which features will go away. Experian is one of the three major credit reporting agencies in the U.S. The company also offers tools to help consumers monitor and protect their credit with free and paid membership options. Here are the features you get with each type of membership: Free membership Paid membership Alerts when your spending or credit utilization ratio changes ✔ ✔ Customized alerts when there are changes to your personal information, new inquiries or new accounts ✔ ✔ Tracking of your FICO Score (based on the FICO Score 8 model) ✔ ✔ Advanced identity theft monitoring ✔ Credit monitoring and alerts with all three credit bureaus ✔ Daily Experian FICO Scores ✔ Identity theft protection, including dark web monitoring and identity theft insurance ✔ Personalized credit card and loan offers based on your credit profile ✔ Once you've made your decision, canceling an Experian account is easy. The company currently offers two options, online or by phone. To cancel online, log into your Experian account using your credentials. Go to your membership settings and choose the option to update your membership. From there, you'll have the option to switch to a free plan with no monthly fees or cancel your account entirely. If you have questions or prefer to speak to a person, you can contact Experian at 866-617-1894. Representatives are available Monday through Friday from 8 a.m. to 8 p.m. CT and on weekends from 8 a.m. to 6 p.m. CT. Once connected, you'll provide your account details and request to either downgrade your membership to a free plan or cancel it altogether. Keep in mind that cancellation policies may vary. Canceling your membership or deleting your Experian account may not happen immediately. The company may need time to process your request, and paid subscriptions may also have specific terms for billing cycles or refunds. Review the details of your membership before submitting your request. If you're concerned, contact Experian's customer service team to confirm how long the process will take. Understanding exactly what you will — and won't — lose will help you make an informed decision about whether to delete your Experian account. Credit monitoring alerts Regular FICO Score updates Identity theft protection Experian platform access Experian credit reporting Your credit score Credit bureau protections Other credit bureau accounts Keep in mind: Deleting your Experian account does not erase your credit history or make you invisible to lenders. If you've decided to delete your Experian account, taking a few proactive steps can help you avoid unnecessary complications. Save a copy of your current Experian credit report for your records. This can be helpful if you need to reference it later, dispute an error or provide documentation for financial applications. If you've started disputing inaccuracies on your credit report through Experian, consider waiting until the process is complete before deleting your account. Closing your account during a dispute may interrupt or delay resolution. If you've set up fraud alerts or a credit freeze using Experian, contact customer service to confirm how you'll manage them going forward. If you're paying for an Experian subscription, consider switching to a free Experian account instead of canceling completely. A free account still provides access to your credit report and basic monitoring without monthly costs. You could also consider other free or low-cost options to stay informed about changes to your credit report, such as if an organization you're part of offers a free Experian membership. Deleting your Experian account may be a good way to cut back on monthly expenses or step away from services you no longer need. While you'll lose access to features like credit monitoring, FICO Score updates and identity theft protection, your credit history and score will not be affected. Before deleting your account, consider downloading your credit report, resolving any disputes and evaluating whether downgrading to a free membership might be a better option. If you decide to move forward, Experian makes it simple to delete your account online or by phone. How do I delete Experian data? While you can delete your Experian account, you cannot delete the data Experian holds about you. As one of the three major credit bureaus, Experian is required to maintain your credit history as part of federal regulations. Even if you cancel your Experian account, your credit report and score will still exist, and lenders can access them during credit checks. Experian will also continue updating your report as things change. Can I create a new Experian account after deleting my old one? Yes, you can create a new Experian account at any time, even after canceling your previous membership. Keep in mind that a new account won't restore any settings or preferences you had in your old account. If you're considering rejoining later, switching to a free membership instead of fully canceling might be a better option. Does logging in to Experian hurt your credit? No, logging into your Experian account does not affect your credit score. Checking your own credit report or score through Experian is considered a 'soft inquiry,' which does not impact your credit. Hard inquiries, such as those made by lenders during a loan or credit card application, are the ones that may temporarily lower your score by a few points. Can I still dispute errors on my credit report without an Experian account? Yes, you can still dispute errors on your Experian credit report even if you don't have an account. Submit disputes directly through Experian's website or by contacting its customer service team. However, having an account can make the process easier by allowing you to track the status of your disputes online.
