FICO Scoring System Changing To Reduce Impact Of Medical Debt

According to the Chicago Tribune, the formula used to determine FICO scores is being changed to minimize the negative impact of bad medical debts. The change will also lessen the effect of old, paid-off debts. Consumers whose bad credit scores are primarily related to medical debt may see their scores jump up by 25 points.

This change in the FICO formula appears to be in line with a report issued by the Consumer Financial Protection Bureau this year. In that report, the CFPB stated that consumers may be overly penalized for medical debts. Given that medical debt is often beyond a consumer's control, the ability to repay it is not necessarily linked to a consumer's tendency to pay regular bills and repay normal debts.


Contact Atlas Consumer Law Today

We expect our clients to have various questions and reservations regarding our debt relief solutions. Fill out the form below or give us a call at (312) 313-1613 and we would be happy to give you the answers you need to make informed decisions for yourself and your family.