Big 3 credit-record firms agree to major changes to aid consumers

If you've ever had errors on your credit report, this will come as good news: On Monday, the three companies that assign your credit score — Equifax, Experian, and TransUnion — are announcing a significant overhaul in how they handle disputes in your credit record and unpaid medical bills, The Wall Street Journal reports. The new rules, to be phased in nationally over the next six to 39 months, are in response to a lawsuit filed by New York state.

Currently, if customers say that something is incorrect on their credit report, the credit-reporting firm assigns the complaint a three-digit number, and if the creditor says there's no problem, Equifax, Experian, and TransUnion typically don't change the report. Under the new rules, trained employees will have to investigate claimed discrepancies regardless of what the lender says. And importantly, the new rules will treat unpaid medical bills — often the fault of insurance companies — differently than other debt.

Monday's settlement comes after three years of investigation by the office of New York Attorney General Eric Schneiderman and more than a year of talks with the credit-reporting companies. It marks the biggest change to the industry since 2003. For more details, read the report in The Wall Street Journal.

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