It can take families years to undo the damage caused by identity thieves.Ĭriminals can access a child’s social security number from stolen tax returns, doctor’s office forms, school registrations or financial documents, either hard copies or online. More than one million children experienced identity fraud in 2017, according to a study by Javelin Strategy and Research, resulting in out-of-pocket costs of over $540 million for families. Why you should freeze your child’s credit Children are an easy target for identity thieves, since it can take years to discover that a child’s identity has been compromised or stolen.įreezing a child’s credit blocks creditors from accessing the child’s credit report, preventing any fraudulent accounts from being opened in their name. Freezing a child’s credit helps protect them from identity theft, including financial aid fraud. “It is unfortunate that the CFPB and the White House are not considering the host of consequences that will result if medical providers are singled out in their billing, compared to other professions or industries,” said Scott Purcell, chief executive of ACA International, the collection industry’s leading trade association.A new law requires credit bureaus to offer free credit freezes for adults and children under age 16. Looser credit requirements could also make it easier for consumers who can’t handle more debt to get loans they might not be able to pay off, others have warned. Hospital leaders and representatives of the debt collection industry have warned that such restrictions on the ability of medical providers to get their bills paid may have unintended consequences, such as prompting more hospitals and physicians to require upfront payment before delivering care. Many groups have urged the federal government to bar tax-exempt hospitals from selling patient debt or denying medical care to people with past-due bills, practices that remain widespread across the U.S., KFF Health News found.

In June, Colorado enacted a trailblazing bill that prohibits medical debt from being included on residents’ credit reports or factored into their credit scores. State leaders also have taken steps to expand consumer protections. The National Consumer Law Center, Community Catalyst and some 50 other groups in March sent letters to the bureau and IRS urging stronger federal action to rein in hospital debt collection. “This is an important milestone in our collective efforts and will provide immediate relief to people that have unfairly had their credit impacted simply because they got sick,” said Emily Stewart, executive director of Community Catalyst, a Boston nonprofit that has helped lead national medical debt efforts. Such an aggressive step to restrict credit reporting and debt collection by hospitals and other medical providers will also almost certainly stir industry opposition.Īt the same time, the Consumer Financial Protection Bureau, which was formed in response to the 2008 financial crisis, is under fire from Republicans, and its future may be jeopardized by a case before the Supreme Court, whose conservative majority has been chipping away at federal regulatory powers.īut the move by the Biden administration drew strong praise from patients and consumer groups, many of whom have been pushing for years for the federal government to strengthen protections against medical debt. Administration officials said Thursday that the new rules would be developed next year. “These measures will improve the credit scores of millions of Americans so that they will better be able to invest in their future,” Harris said.Įnacting new regulations can be a lengthy process. The agency will be charged with developing the new rules. “No one in this country should have to go into debt to get the quality health care they need,” said Vice President Kamala Harris, who announced the new moves along with Rohit Chopra, head of the Consumer Financial Protection Bureau, or CFPB.

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