Bill Seeks To Erase Medical Debt From Credit Reports

NEW YORK (CNNMoney) -- Medical debts that you paid off long ago can drag down your credit score for years after you've settled them. But recently proposed legislation could mean old doctor bills will finally be erased from your credit report.

Rep. Heath Shuler (D-NC) proposed a bill that would require the three major credit bureaus to remove records of medical debt of up to $2,500 within 45 days of being paid off -- a move that could boost the credit scores of millions of Americans. Currently, any medical debt that gets sent to collections stays on your report for up to seven years -- even if you've paid it off or settled it.

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