Medical Bill Help

[dville]

I would like to know what people think about the new bill that is being introduced H.R. 2086 - Medical Debt Responsibility Act of 2011 which removes paid charge offs after 45 days from your credit report. I find it interesting how the media hasn't really been covering it and how it is kind of just sitting there with Congress and it could potentially help millions of people in America fix their credit. Anyone else hear about this? Would like to get opinions...

...and no...I am not from the government. I am someone with a bunch of charge-offs that just needs a freaking break!A

[Lian]

In my opinion, it is long overdue, not only for medical debt, but for all types of debt.

I see no reason for a charge-off to even be a reportable derog to a consumer credit report. A charge-off is an internal bookeeping measure taken by a creditor, and not a form of additional delinquency resulting from an action or inaction by a consumer. If they want to record the level of account delinquency, they can report the 60/90/120+ lates, which are the actual adverse actions/inactions caused by the consumer. Additionally, upon referral to a debt collector, their collection activity is reportable. As is any judgment they obtain for obligation on the debt. The stage is covered.

To compound the consumer's woes by additionally tacking on the record of internal business decisions made by a creditor adds nothing to the recordation of consumer payment history, and is an additional major scoring derog considered under FICO.