Over the last several years, there has been a substantial movement to allow consumers to miss payments, judgments and tax liens deleted form their report. Two states have now passed laws that create an unfair and uneven assessment with consumer credit reports. What is fairness? That some are treated one way and others are treated another way? That is unamerican.
Medical collections have been a hot topic for the last several years. Once a medical bill went six months past due, it oftentimes has been sent to a collection company. It then appears on the consumers credit report and can drop that credit score 70, 80 and even over 100 points.
Some states have stepped in to create an unfair advantage for some. Colorado and New York have recently passed state laws that restrict the ability of medical providers and collection companies to report past due medical bills to the credit agencies. What incentive does a consumer have to pay his / her medical bills now? Why do consumers in 48 other states have to pay their medical bill or that bill will show up as a collection, substantially hurting their credit rating. Only in New York and Colorado, medical collections will not show up in the credit report.
State legislators have now created an uneven credit report. Those citizens in Colorado and New York gain an extra benefit millions of other consumers do not. Now it is going to be a race to the bottom. Other state legislators will step in and pass other restrictions.
This issue should be uniform across the country. States should not be allowed to dictate what goes into a credit report. It should be a federal issue so that it is applied evenly. Otherwise, there is inequality and that is what is happening now.