Time is running out to get BOTH new Marketplace Sock designs for only $5/month.
Don’t wait – this special offer ends soon!
A report from the New York Federal Reserve this week finds that the big reporting agencies — Equifax, Experian, and TransUnion — have started excluding certain items that used to be considered negative dings on our credit. The New York Fed used anonymous data from Equifax, and zeroed in on what are called collections accounts — these are tied to people with various debts that get passed on to a collections agency.
These debts can be things like missed credit card payments or mortgage defaults. But these accounts have also included items some argue are unfair or prone to error: unpaid traffic tickets, missed gym membership fees, even overdue library books.
In 2015, the big three credit reporting firms settled with 31 state attorneys general to clean up the process behind reporting missed payments by the second half of 2017. Here are some highlights from the settlement which took effect in July 2017. Among the changes: credit reports can only include a debt if there’s been an actual contract or an agreement to pay, which would exclude traffic tickets. Medical debts that are less than 180 days old can’t be reported, either.
Overall, the New York Fed report demonstrates that after the change, the number of people with at least one account in collections dropped by about 25 percent.
Among the report’s findings:
If you’re a member of your local public radio station, we thank you — because your support helps those stations keep programs like Marketplace on the air. But for Marketplace to continue to grow, we need additional investment from those who care most about what we do: superfans like you.
Your donation — as little as $5 — helps us create more content that matters to you and your community, and to reach more people where they are – whether that’s radio, podcasts or online.
When you contribute directly to Marketplace, you become a partner in that mission: someone who understands that when we all get smarter, everybody wins.