CFPB finalizes rule barring medical debt from credit reports

[mahatmakanejeeves]

Source: The Hill

CFPB finalizes rule barring medical debt from credit reports

BY JOSEPH CHOI 01/07/25 05:00 AM ET

The Consumer Financial Protection Bureau (CFPB) on Tuesday finalized its rule barring medical debt from being included on credit reports, potentially freeing up billions in credit.

The finalized rule will prevent medical bills from being included on credit reports used by lenders and will prohibit lenders from using medical information in their decision-making. ... The CFPB estimated this rule will remove $49 billion in medical bills from the credit reports for roughly 15 million Americans.

The Biden administration advanced this rule with the aim of helping people with medical debt obtain better credit scores and have an easier time applying for new loans. The CFPB cited its own research that found medical debt to be a poor predictor of whether someone will repay a loan.

Vice President Harris is set to announce the final rule on Tuesday, as well as announce that states and localities have leveraged funds from President Biden's American Rescue Plan to support the elimination of over $1 billion in medical debt for more than 700,000 Americans.

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Read more: https://thehill.com/policy/healthcare/5070182-medical-debt-removed-credit-reports-cfpb/amp/

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Hat tip, the Washington Post this morning, but I’ve been unsubscribed.

https://www.washingtonpost.com/business/2025/01/07/cfpb-medical-debt-credit-reports/