According to the Chicago Tribune, the formula used to determine FICO scores is being changed to minimize
the negative impact of bad medical debts. The change will also lessen
the effect of old, paid-off debts. Consumers whose bad credit scores are
primarily related to medical debt may see their scores jump up by 25 points.
This change in the FICO formula appears to be in line with a report issued
by the Consumer Financial Protection Bureau this year. In that report,
the CFPB stated that consumers may be overly penalized for medical debts.
Given that medical debt is often beyond a consumer's control, the
ability to repay it is not necessarily linked to a consumer's tendency
to pay regular bills and repay normal debts.