Colorado Medical Debt Credit Reporting: Understanding the New State Law

Colorado has introduced a new law to address medical debt credit reporting, which is a significant change for residents. The law aims to protect consumers from having medical debt reported on their credit reports.

Under the new law, medical debt can only be reported on credit reports if it is at least 180 days past due. This means that medical providers can no longer report debt immediately after a patient misses a payment.

Consumers will still be responsible for paying their medical bills, but the new law provides a buffer to prevent medical debt from negatively impacting their credit scores. This change is a step towards financial protection for Coloradans.

The law also requires medical providers to send written notice to patients before reporting their medical debt to credit bureaus. This notice must include the amount owed, the date the debt became past due, and a statement explaining the patient's rights.

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Colorado has taken a major step in protecting its residents from the negative impact of medical debt on their credit reports. HB23-1126, a groundbreaking consumer protection law, has taken effect.

This law prohibits the inclusion of medical debt information on credit reports, giving consumers a much-needed reprieve from credit harm. Colorado is the first state to enact such legislation.

The onus is now on credit bureaus to keep medical debt information off Coloradans' credit reports. This means consumers no longer have to worry about having their medical debt information reported.

However, if you're planning a major life event that requires a credit check, such as buying a home or applying for a loan, it's a good idea to review your credit report now to ensure your medical debt information has been removed properly.

If your medical debt still appears on your credit report, you have the right to dispute that information and ask to have it removed. This can make a big difference in your ability to get an apartment, a job, or an affordable interest rate.

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In Colorado, over 200,000 residents have received financial aid to help pay off their medical debt.

This is a significant number, and it's likely that many of these individuals have received assistance through the state's Medical Debt Relief Program.

The program has been instrumental in helping Coloradans manage their medical debt, which can often be a major source of financial stress.

One of the most notable outcomes of the program is that it has helped reduce the number of medical debt collections in the state.

This, in turn, has had a positive impact on credit reporting in Colorado, with many residents seeing improvements in their credit scores.

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It's a good idea to verify that medical debts aren't showing up on your credit report, especially since the new Colorado law requires credit reporting companies to remove them.

You can request a copy of your credit report from Equifax, Experian, and TransUnion once a year, and visit AnnualCreditReport.com or call 877-322-8228 to do so.

Credit reports often contain errors, so it's a good idea to double-check that your medical debts have been removed.

An estimated 700,000 people in Colorado have medical debt in collections, which can negatively impact their credit score.

If you live in Colorado, you have the right to dispute any incorrect information in your credit report, including any medical debts that shouldn't still show up.

You can file a complaint with the Colorado Attorney General's office if the company won't correct problems with your credit report.

The new law doesn't eliminate the debt, but limits who can see it, which is a relief for those who have medical debt in collections.

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Colorado's medical debt credit reporting law took effect on August 14, 2023.

This law, House Bill 23-1126, provides first-in-the-nation protections for Coloradans with medical debt. Colorado is the first state in the country to enact such legislation.

The law prohibits the inclusion of medical debt information on credit reports, shifting the onus to credit bureaus to keep this information off Coloradans' credit reports. This means consumers no longer have to worry about medical debt affecting their credit scores.

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If you're a Coloradan with medical debt, you may want to review your credit report now to check that your medical debt information has been removed properly. This is especially important if you have an important life event on the horizon that involves a review of your credit report or credit score.

You have the right to dispute any medical debt information that still appears on your credit report and ask to have it removed.

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