Released: June 12, 2024

CFPB plans to remove medical debt from credit reports

Source: Noam Levey, NPR

There is growing evidence that credit scores depressed by medical debt can threaten people’s access to housing and fuel homelessness. People with low credit scores can also have problems getting a loan or can be forced to borrow at higher interest rates.

Consumer Financial Protection Bureau researchers have found that medical debt — unlike other kinds of debt — does not accurately predict a consumer’s creditworthiness, calling into question how useful it is on a credit report.

The proposed rules would not only bar future medical bills from appearing on credit reports; they would also remove current medical debts, according to CFPB officials. Even though the debts would not appear on credit reports, patients will still owe them.

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