April 1, 2015 Newsletter
Medical Debt Credit Bureau Reporting
Just recently announced, under an agreement with the state of New York, and will be mandated nationwide, the three largest credit reporting agencies will change the way they handle errors and list unpaid medical bills. Equifax Information Services, Experian Information Solutions and TransUnion collect and report credit information on more than 200 million Americans.
Some of the major changes consumers can expect include:
- Medical debts will not be reported until after a 180-day “waiting period” to allow insurance payments to be applied. The credit reporting agencies will also remove from credit reports, any previously reported medical collections that have been or are being paid by insurance.
- Data furnishers will be prohibited from reporting someone without a date of birth. The agencies will reject data that does not comply with this requirement.
- Consistent standards will be reinforced by the credit bureaus to data furnishers.
- Consumers who dispute items on their credit reports will receive additional information from the credit bureaus, along with the results of their dispute, including a description of what they can do if they are not satisfied with the outcome of their dispute.
- The credit reporting agencies are focusing on an enhanced dispute resolution process for consumers that are proven victims of identity theft and fraud, as well as those involved in mixed file situations.
These changes will be implemented over the next six months, but some changes could take up to a year or two to fully implement.
One Credit Bureau No Longer Allowing Us to Report Certain Data
Experian is no longer accepting data that fall under certain industries/categories.In an email we recently received from Experian, they list the unacceptable data that cannot be reported, which includes:
- Checking/Savings Account Activity/Balances
- Check Cashing Accounts
- Pay Day Loan Accounts
- Health Club Dues
To view an exhaustive list of Experian’s unacceptable data, click here.
We sent an email, previously, to our clients that this may affect. We are trying to get further clarification on the actual industry types they are referring to.
Current information that falls under these categories and is reported to Experian is now in the process of being deleted. Any future submissions of the above data will be rejected and not loaded in their database.
At this point, we are not certain whether the other two credit bureaus we report to, TransUnion and Equifax, will follow in Experian’s footsteps. We will keep you updated on any new information we receive.
TCPA Compliance: Creditors Beware
As 2015 ushered in, a new wave of Telephone Consumer Protection Act (TCPA) court cases started surfacing.
Put simply, the TCPA prohibits the use of an autodialer to make any call or send any text messages to a wireless phone number without the prior express consent of the contacted party.
One large case, involving CVS Pharmacy, alleges they used an automated dialer to send pre-recorded calls and text messages to their customers without their consent.
Some of those messages related to appointment reminders, prescription refills and other marketing and sales information.
To fully comply with the TCPA, Finance System of Green Bay, Inc. is providing our readers verbiage which would allow to be in compliance with TCPA.
The verbiage could be included in original applications, admission forms or credit applications.
If you have an existing customer, a rubber stamp could be used on the next appointment or visit. Act quickly and protect yourself today or the next class action lawsuit may be coming to you.
Upcoming Appearances
2015 IREM Milwaukee Spring Seminar and Tradeshow
March 27 at The Italian Community Center – Milwaukee
AAHAM-Wisconsin
Chapter Spring 2015 Conference
May 6-8 at the Wilderness Hotel and Conference Center – Wisconsin Dells
