Regulators are continuously searching for safer methods to protect consumers. Whether decisions are made to provide additional disclosures or to enforce certain rules for negligent credit practices, consumers are the ultimate beneficiaries of enhanced oversight. New credit reporting changes that are due to take effect should provide greater opportunities for consumers to address various credit-base discrepancies. Many of the new credit sharing procedures involve the collection and the reporting of a consumer’s account information. The three largest credit reporting entities in the United States have agreed to a timeline for the new credit reporting changes to take effect.
Key Dates for Credit Reporting Changes
September 8, 2015, is the initial date for the major credit bureaus to have retooled their internal reporting methods. Previous procedures required a consumer to order a copy of their credit report prior to submitting a formal dispute. Credit reporting changes will enable a consumer who has not requested a recent credit report to dispute instances of erroneous medical billing. The new credit changes are expected to level the playing field for a consumer as a final resolution was previously required for the removal of certain medical collections. The impact of the former procedures hampered the loan approval process for many borrowers who experienced delayed lending decisions for homes, automobiles, credit cards and other types of financing.
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September 8, 2016, is the date that major credit reporting agencies are expected to have procedures in place to streamline information within the major credit bureaus. New policies will designate a format that collection agencies must follow. Collection agencies will be required to provide specific information about the original creditor as well as the transaction dates and other details. A collection agency that fails to provide the requested information may receive a rejection for their claim.
June 8, 2018, is recognized as the completion date for the settlement process. The credit reporting changes should be completely overhauled. The new format is expected to simply the information sharing process. Medical collections that are less than six months delinquent will be ineligible for reporting purposes. The three major credit bureaus will remove or largely ignore medical collections that are being resolved by insurance companies.
Collection agencies will be required to combine a consumer’s original debt into a single bill versus the former practice that created multiple creditors for one invoice. As discrepancies are realized among credit bureaus, the credit reporting agencies will complete an investigation to correct the data. Consumers will receive updated information on a more frequent basis as well. The credit bureaus will provide consumers with a detailed analysis of any investigation that involves a dispute. Consumers who are not satisfied with the outcome of a credit bureau investigation will have the option to request an additional review of the dispute.
