Biden Seeks to Remove Medical Debt from Credit Reports to Aid Millions

The Biden administration proposed removing unpaid medical bills from credit reports. This could improve credit scores for millions.
The Consumer Financial Protection Bureau said this would help Americans recover financially from medical issues and improve credit score accuracy.
About 20% of Americans currently have medical debt, a problem worsened by COVID-19. Medical debt often harms credit scores.
If passed, the proposal would stop credit agencies from including medical debt in reports used to evaluate loan applications.
The move is praised by many as helping borrowers by potentially raising credit scores. This could make it easier to get a mortgage, buy a home, or start a business.

newsweek.com

Relevant topic timeline:

9/21/2023

CFPB Proposes Removing Medical Debt from Credit Reports to Aid Families

The Consumer Financial Protection Bureau (CFPB) is beginning a rulemaking process to remove medical bills from Americans' credit reports in order to help families recover financially from medical crises, prevent debt collectors from pressuring individuals to pay bills they may not owe, and address the inaccuracies and mistakes in medical billing data.

9/21/2023

Biden Administration Takes Steps to Remove Medical Debt from Credit Reports, Improving Ratings for Millions

The Biden administration is working to remove medical bills from people's credit scores, potentially improving ratings for millions of individuals and making it easier for them to obtain loans for vehicles or homes.