The agreement with the New York attorney general also makes important strides in how medical debt is handled, consumer advocates said. About 43 million Americans have overdue medical debt on their credit reports, according to a CFPB report released in December. Many credit reports are negatively hit by reported delinquencies on medical bills resulting from delays by insurance companies or disputes with them over coverage.

Under terms of the agreement, the bureaus will institute a 180-day waiting period before medical debt is reported to permit time to resolve delinquencies related to insurance-coverage disputes or payment delays.

Ultimately the success of the agreement will depend on whether the credit bureaus live up to it and government agencies enforce it, Rheingold of the National Association of Consumer Advocates said.

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