Recently I read about a Bill that’s being submitted to Congress concerning a change in how long information may be kept on your credit report. This bill pertains specifically to medical collections. Under the credit law currently in place, negative information stays on your report for seven years. After that period of time it is removed from your report whether it has been paid or not.
The goal of the Bill being considered is to reduce that seven year time frame if the information involves a medical payment. In other words, the information about a medical bill that has gone to a collection agency will not be retained on your record for the full seven years.
I have to tell you that I’m not a huge fan of this Bill. Call me old school, but I believe that if it is a debt that you owe, it is a debt you should pay. Certainly there are special situations that should be addressed on an individual basis but I question whether changing the current law as it is currently being considered is the correct response to those individual concerns.
Although I agree with the basic premise that the credit collection process may need to be revamped, I believe that the best way to remove something from your credit report is to simply pay the debt.
Here is a 2 minute clip with advice about how to buy and pay for things; I believe this is some of Steve Martin’s finest work! (You just need to sit through the 11 second Dove ad before it plays)