Biden Administration Finalizes Ban On Medical Debt From Appearing On Credit Reports, Trump Could Undo

The New York Times reports:

The Consumer Financial Protection Bureau moved on Tuesday to ban medical debt from appearing on credit reports, potentially lifting the credit scores of about 15 million Americans and making it easier for them to obtain loans. The finalized new rule would effectively prohibit loan providers from using medical information while making lending decisions. It is set to take effect 60 days after publication in the federal register, but with Trump returning to office this month, its future remains in question.

The bureau has found that having medical debt on a credit report is not a good predictor of whether a borrower will repay a loan, and that consumers frequently report receiving inaccurate bills. Biden administration officials said that the change could result in the approval of thousands of additional affordable mortgages each year, and that Americans with medical debt on their credit reports could see their credit scores increase by an average of 20 points.

Read the full article.

Today, the CFPB finalized a rule that will remove an estimated $49 billion in medical bills remaining on the credit reports of about 15 million Americans.https://t.co/PeCoLAeQSH

— consumerfinance.gov (@CFPB) January 7, 2025

Biden admin finalizes rule to ban medical debt from credit reports https://t.co/Vind67AMbJ

— Axios (@axios) January 7, 2025