Equifax, Experian and TransUnion to strip billions of dollars from record – allowing people to get home and car loans previously denied
- Equifax, Experian, and TransUnion all announced Friday they would collectively wipe 70 percent of a reported $195 billion deficit from their collection accounts
- The change targets already paid debts still stuck in collections, which can mar a consumers’ credit report for up to seven years even after they’ve been paid off
- The firms are also planning to remove all unpaid debts of less than $500 in the first half of 2023 – a threshold that could rise, sources close to the matter said
- Under the companies’ new guidance, new unpaid medical debts won’t get added to credit reports for a full year even after being sent to collections
- Outstanding medical costs can result in consumers being denied loans for cars homes, and college, as well as applications for property purchases and rentals
- The change announced by the three credit giants – the world’s three largest consumer credit agencies – seeks to aid those negatively affected by those debts