ALBANY, N.Y., March 9 (UPI) -- Fixing errors on a credit report may be a lot easier after the three major credit-reporting agencies agreed Monday to an overhaul of how they handle disputes.
Equifax Information Services LLC, Experian Information Solutions Inc. and TransUnion LLC agreed to be more proactive in how they handle disputes on consumers' credit reports. The agreement came about Monday after an investigation by the office of New York State Attorney General Eric Schneiderman.
Even though the talks took place between the credit agencies and New York officials, the overhaul will affect consumers nationwide.
Under the new rules, the agencies are required to have trained employees review documentation consumers provide when they dispute an error on their credit reports. Previously, the agencies would contact lenders about the dispute and if the lenders or creditors did not agree there was an error, nothing more would be done.
Now, an employee with the credit agency must still investigate and resolve the possible dispute.
The agreement "is a good sign that the reporting agencies are finally willing to step up their game and respond to the needs of hardworking consumers and their families," Schneiderman said in a statement.
In addition to offering more follow-through on credit report disputes, the agencies also promised to allow more time before defaulted medical bills are put on reports.
Credit agencies will now wait 180 days before putting unpaid medical bills on a credit report. This new protocol came about because sometimes insurance companies delay payments leading to unfair delinquency notices for patients.
Also, once an insurance company pays a bill that was reported on a consumer's credit report, the credit agencies have a responsibility to immediately remove it.
Most of the changes will go into effect over the next three years.
