Senate Democrats pressured the heads of the three major credit ratings agencies on April 27 to disregard the debt incurred by borrowers for medical expenses.
“People are busy enough with their children and their jobs and their lives,” said Sen. Sherrod Brown (D-Ohio), the chair of the Senate Committee on Banking, Housing, and Urban Affairs. “They shouldn’t have to spend that kind of time because some company they’ve never heard of screwed up.”
According to a study by the Consumer Financial Protection Bureau, medical debt is the most common type of debt in collections, with nearly half of all debt collection items on credit reports. This is a major concern for borrowers, as having medical debt on their credit reports can negatively affect their credit score and make it more difficult for them to obtain credit in the future….