$18m is just under $0.01 on the dollar, which sounds very good value, but apparently debt collectors pay as little as $0.04 to $0.14 on the dollar anyway due to the low chance of getting paid:
Election year. Just take it with a grain of salt. What is reported and what actually happens is alway very different. Plus it is democrats controlled, money generally assumed by them to grow on trees or rain from sky.
If the debt has already gone to collections, isn’t the person already screwed though? It’s documented in their credit reports whether or not it’s paid off. Damage has already been done.
Bye bye any chances of buying a home. Increased rates for various insurance products. Most apartments tend to demand high security deposits from ppl with bad credit. financing a car will likely result in subprime auto loan products.
Have heard some cases where it can be taken off completely though.
Officially no. Unofficially my relatives in the loan industry still use that. American laws especially finance are not strictly enforced unless political, or terrorists-related. After election it will be overturned likely.
>Effective July 1, 2022, all medical collection debt that has been paid by the consumer in full will no longer be included on U.S. consumer credit reports.
Where exactly are your "relatives in the loan industry" getting the data if not from the credit reporting agencies?
I'm sure many people will take screwed over double screwed. It sounds like they are targeting people who are in extreme financial hardship. Working your way out of that is one thing after another, so one thing less to worry about is always good.
That depends, I think, entirely on the debt collector being sold to.
I've had medical debt sold to debt collectors that was there for years as I went through back and forth figuring out whether it was valid, and it never showed up on my credit report, nor did various others where a couple of medical providers I used for a while had a bad habit of selling my bills to them before my insurance paid them in full for it.
