Medical debt is No.1 reason collection agencies contact consumers

Medical debt is the most common type of past-due bill or payment for which consumers are contacted by collection agencies, according to a study by the federal Consumer Financial Protection Bureau.

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For the study, researchers conducted a survey between December 2014 and March 2015, asking consumers about their experiences, if any, with debt collectors over the past year.

The study found 59 percent of consumers who were contacted about a debt in collection said it was related to medical debt. This was followed by past-due bills for telecommunications (37 percent) and utilities (28 percent).

The study’s authors said medical debt in particular is unique compared to other types of debt collection examined in the survey, as it was prevalent across various demographic and credit-score groups.

Click here to read the full survey results.

 

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