Veteran’s Medical Debt

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    I recently listened to your webinar on FCRA/FACT Act. I made note that we do not need to consider Veteran’s medical debt as part of our credit decision. So if we pull a credit bureau on our applicant and see medical collections are we just suppose to ask them if they are a Veteran? How do we know they are a Veteran? I know you mentioned that the credit bureaus have a data base that they check but I didn’t know if the banks had access to it too.
    Thank you!
    Ann Michele


    Per the Veteran’s administration requirements they should be keeping a list on their website. But as part of the application process doesn’t your application ask them? If not as part of normal due diligence it would probably be a good idea to ask anyone with medical debt if they are or have been a member of the armed services. Since the CFPB is considering the removal of all medical debt in credit decision you may want to watch the proposed rule as well.

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    Hi Ann Michele, thank you for your question. When it comes to considering veteran’s medical debt in credit decisions, you’re correct that you’re not required to include it. If you encounter medical collections on a credit report, the appropriate course of action would be to ask the applicant if they are a veteran. However, verifying veteran status can be done through various means, including asking for documentation such as a DD Form 214 or a Veteran Health Identification Card. While credit bureaus do have databases to verify veteran status, banks typically don’t have direct access to this information. It’s essential to ensure compliance with FCRA/FACT Act guidelines while handling such inquiries. Hope this helps clarify!

    • This reply was modified 4 months, 1 week ago by debtnirvana.
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