Don’t let your medical info be used against you!

[Consumer Reports]   Dear Friend, David Smith never gave much thought to how the giant credit reporting agencies handle consumers’ medical bills. That was, until he went to the hospital for complications from diabetes, and left with his leg amputated to the knee, a slew of bills not covered by Medicare, and a credit score slashed in half because of unpaid bills. “I can’t get a loan, I can’t do nothin’ no more,” says David, owner of a towing business in West Monroe, N.Y., for more than 30 years. Because of that medical debt, which he had been paying toward, he couldn’t finance the tow trucks he needed and nearly lost his business. A loophole in federal law allows credit reporting agencies to share your medical bills with banks and lenders even if they're inaccurate or not owed – leaving hard working people like David and you without access to car loans, mortgages, and credit cards. But we have a chance to close that loophole, and make sure everyone has access to needed credit, thanks to a proposal to remove medical debt from most credit reports. [Tell the CFPB you support banning credit agencies from reporting medical debt to banks and lenders!]( plan doesn’t erase the debt – it merely gives people the chance to earn the money they need to pay off medical bills. [Sign the Petition»]( Closing this reporting loophole is so important for consumers, because research shows having unpaid medical bills does not predict a high risk for paying back credit cards, car loans and mortgages. Because of our complex insurance reimbursement system, medical debt is often inaccurate or inflated – or isn’t even owed by the consumer. And unlike a car loan or mortgage, no one seeks to incur medical debt voluntarily; it’s often due to an accident or sudden illness. This plan would also end the practice known as ‘debt parking’ – in which debt collectors buy medical debt, then place it on a consumer’s credit report. When the consumer applies for credit, they discover that debt is hindering their ability to get a loan, so they feel forced to pay it, even if it’s under dispute or invalid.  Of course, we’re up against the debt collection industry that wants to use every loophole to make money, so we need people to speak out in support of fair financial practices. [Please sign our petition to the CFPB to close this loophole,]( if you’ve had a medical debt hurt your credit score, tell us about it after you sign!  [Sign the Petition»]( Thank you for standing up for a fair financial future for everyone, and please share this email with anyone you know who had medical debt negatively impact their life. Meg BohneConsumer Reports [Unsubscribe from Consumer Reports action alerts.]( © 2022 Consumer Reports, 101 Truman Avenue, Yonkers, NY, 10703 [Contact Consumer Reports](