Big credit news is here — and it affects nearly every American.
The Consumer Financial Protection Bureau (CFPB) has recently announced a major policy shift: medical debt can now be included on your credit report again.
That means starting as early as next month, over 100 million Americans could see their credit scores suddenly drop — simply because they got sick or had to care for a loved one.
💔 Why This Matters So Much
Medical debt is one of the most unpredictable financial burdens. It can happen to anyone, at any time — and even impact you through your children or spouse.
It’s estimated that 79 million Americans struggle with medical bills or debt, and over 91 million say they can’t afford quality healthcare if they needed it today.
Now, with this policy reversal, even responsible, hardworking people risk facing bankruptcies, collections, and major score drops — all because of health-related expenses they didn’t plan for.
🩺 How Medical Debt Will Show Up on Your Credit
Many insurance plans cover only about 80% of major medical expenses. For example, if your bill is $100,000, you’re left with $20,000 out-of-pocket.
Under the new rule, these unpaid balances can now be reported as collections — dragging down your credit score for up to seven years.
✅ What YOU Can Do Right Now
1️⃣ Always respond to collection letters immediately. When you receive a letter from a collection agency, you have 30 days to respond with a debt validation letter. This forces them to prove they have the legal right to collect on the debt.
2️⃣ Never sign or talk on recorded lines. Avoid signing letters or verbally confirming your identity on calls. Collection agencies can use your words or signature to strengthen their case — or even create a new contract.
3️⃣ Use certified mail and keep records. Send all letters via certified mail so you can track delivery and have proof.
4️⃣ Challenge medical debt using HIPAA laws. If a collection agency shares your detailed medical information as proof, it can violate HIPAA privacy laws. Many agencies will remove debts when challenged on this.
5️⃣ Check with your insurance. Before paying anything, confirm with your insurance company to ensure the debt is actually owed. Sometimes, debt collectors send fake or already-paid bills.
6️⃣ Avoid talking to collectors directly. They may try to record you to create a verbal contract or restart the statute of limitations. Don’t fall into this trap!
7️⃣ If you still owe the medical provider directly, negotiate. Set up a payment plan before the bill goes to collections. This prevents it from appearing on your credit report in the first place.
💡Real Success Story
One of our Elite Credit System members, Greg, recently removed a collection account in just 12 days by using these exact strategies.
When you know your rights — and have the right tools — you can fight back effectively.
💥Don’t Let Medical Debt Destroy Your Credit
If you need extra support, our Elite Credit System has step-by-step guides, dispute letter templates, and live coaching to help you handle these challenges fast.
💡 Quick Tip!
While you’re taking these steps, make sure you grab our DIY Credit Repair Bundle — it has ready-to-use dispute letters for collections, charge-offs, and more so you can start taking action immediately. Plus, if hard inquiries are dragging your score down, download our FREE Hard Inquiry Removal Pack to clean those up fast.
💬Have questions?
Drop them in the comments below — or head to our website, where your questions go directly to my cell phone.
Stay informed, stay protected, and take control of your credit future.
