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Credit Reporting Changes on the Horizon Will Affect Your Business

Credit reporting is a powerful tool used in aiding the collectability of accounts. Consumers and patients are often compelled to pay due to the possibility of something affecting their credit score and report. But changes are coming to the way we report to credit agencies. If you are a credit reporting client, you might be affected by this.

Consumer Assistance Plan
In 2015, Equifax, Experian, and TransUnion announced the National Consumer Assistance Plan to enhance their ability to collect complete and accurate consumer information and provide consumers more transparency when interacting with consumer reporting agencies about their credit reports.  The plan was announced after cooperative discussions and an agreement with the Attorneys General of multiple states. Under the plan, the three companies are taking a number of steps to improve data accuracy and quality and make it easier for consumers to understand their credit information. The companies are implementing the plan over a three-year period with full implementation of the plan expected by March 2018. What does that mean for our clients?

What it Means for Businesses
The important matter at this point is that we determine what you, as our client and the original creditor, specify as the date of first delinquency.  The date of first delinquency must be a date prior to bad debt placement with PRC. Medical debts won’t be reported until after a 180-day waiting period from the date of delinquency to allow insurance payments to be applied. The credit reporting agencies will also remove from credit reports previously listed medical collections that have been or are being paid by insurance.

If we are currently credit reporting for you, we will follow this directive, beginning September 15, 2017, based on what you determine is your date of first delinquency.  

Letters and forms have been sent to our clients that will be affected by this directive. If you are in need of help determining your date of delinquency, or need further clarification on this, please contact PRC’s Chief Client Officer John Cook.