In a move that could influence auto finance underwriting, Equifax, Experian and TransUnion jointly announced on Tuesday that medical collection debt with an initial reported balance of less than $500 has been removed from U.S. consumer credit reports.

With this change, the companies said now nearly 70% of the total medical collection debt tradelines reported to the Nationwide Credit Reporting Agencies (NCRAs) are removed from consumer credit files.

This change reflects a commitment made by the NCRAs last year, according to a news release that included a joint statement from Equifax CEO Mark Begor, Experian CEO Brian Cassin and TransUnion CEO Chris Cartwright.

“Our industry plays an important role in the financial lives of consumers. We understand that medical debt is generally not taken on voluntarily and we are committed to continuously evolving credit reporting to support greater and responsible access to credit and mainstream financial services,” they said.

“We believe that the removal of medical collection debt with an initial reported balance of under $500 from U.S. consumer credit reports will have a positive impact on people’s personal and financial well-being,” they continued.

The NCRAs previously announced that as of July 1, 2022, all medical collection debt that has been paid by the consumer in full is no longer included on U.S. consumer credit reports.

The company noted that the time period before unpaid medical collection debt appears on a consumer’s credit report was also increased from six months to one year, giving consumers more time to address their debt before it is reported on their credit file.

To further help U.S. consumers manage financial health during continued economic uncertainty, Equifax, Experian and TransUnion are also providing free weekly credit reports through the end of 2023 via AnnualCreditReport.com.