Last month, New York State Attorney General Eric Schneiderman announced a settlement after a three year investigation of the credit reporting agencies that would represent a radical change in the way they do business. Provisions of the settlement include:
- Moving away from an automated credit dispute resolution process to using specially trained employees;
- Establishing a six month waiting period before reporting medical debts on a credit report (which are often caused by delayed insurance payments or other disputes);
- Removing medical debts from a credit report after the debt is paid by insurance; and
- Publicizing the availability of free yearly credit reports from each agency through this website. The agencies will also have to provide a free report to consumers who experience a change in their credit reports after initiating a dispute.