Biden administration to prohibit medical debt from harming credit scores of millions
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Biden administration plans to ban medical debt from being included in credit scores. This would help millions of Americans with medical debt.
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The Consumer Financial Protection Bureau will develop new rules next year to restrict credit reporting of medical debt.
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About 100 million Americans are burdened with medical debt that hurts their credit scores and makes it harder to get housing, jobs, etc.
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Credit reporting of medical debt is a common tactic used by hospitals to get patients to pay, but medical debt is a poor predictor of creditworthiness.
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Major credit agencies recently stopped including some medical debt on credit reports, but millions still have medical bills on their reports.
