According to the Consumer Financial Protection Bureau, individuals with medical debt in Illinois and throughout the country may see an unnecessarily harsh hit to credit scores if that debt goes to collections. Not only does medical debt impact creditworthiness in a way that some experts say is inaccurate, but the Federal Reserve study indicated that medical debt made up over 50 percent of reported collections.
In a study of 5 million anonymous credit reports, the Consumer Financial Protection Bureau found that all that medical debt was having a harsh impact on individual credit worthiness. Specifically, creditworthiness of individuals with medical debt seemed to be underrated. The Bureau says that medical debt is treated the same as non-medical debt when it enters collections,which isn't an accurate interpretation of a person's ability to maintain accounts.