The Consumer Financial Protection Bureau (CFPB) recently released a report showing that medical debt that goes to collections may disproportionately affect consumers’ credit scores. The report states that “credit scoring models may underestimate the creditworthiness of consumers who owe medical debt in collections.” A study by the Federal Reserve Board found that medical bills account for over half of all collections on credit reports. In prepared remarks, CFPB Director Richard Cordray stated, “In many ways, medical bills are unusual. When you take out a loan, typically you know how much you will owe and the interest rate you will be charged up front. But with medical costs, you have less visibility. Costs are often unknown until after treatment.” For more, read the CFPB report and Cordray’s full remarks.