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New credit reporting rules could impact South Carolina residents

Under the terms of a settlement with New York state, the three major credit bureaus are changing the way that credit is reported. Specifically, those who dispute anything that a creditor reports will have that dispute investigated even if the creditor says the information is correct. In addition, medical debt will not go on a credit report for at least 180 after the debt has been accrued.

This means that a debtor actually has time to receive the bill and pay it before it gets reported. These changes may have a large impact on debtors for several reasons. For debtors, it means that they will not have to worry about a mistake on their credit report interfering with their ability to get a mortgage or a credit card. It also means that mistakes that appear on a credit report will be easier to fix.

Finally, those who have an unpaid medical debt on their credit report will not have to worry as much about a debt that may not reflect their ability to make payments. As many as 43 million Americans may have blemishes on their credit report due to medical bills that they do not know were reported to credit bureaus. These changes are expected to go into effect gradually during 2015 and will apply on a nationwide basis.

While these changes may be helpful to certain consumers, others may be facing debts that they cannot handle. However, those who wish to file for bankruptcy may be able to get a fresh financial start. In addition to having debts discharged, it may be possible to reorganize secured debt without losing ownership of property such as a home or car. It may also be possible to put a stop to creditor harassment.

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The Huggins Law Firm, PA

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