CFPB Aims to Remove Medical Debt from Credit Reports to Aid Consumers
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Rohit Chopra, director of the Consumer Financial Protection Bureau, is working on rules to remove medical debt from credit reports. This could help Americans with medical debt more easily get loans, rentals, and jobs.
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The CFPB has recently penalized medical debt collectors, warned healthcare providers about aggressive billing practices, and published reports on how healthcare undermines Americans' financial security.
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The CFPB found medical debt is often inaccurate and not a good predictor of whether people can pay other bills. Still, unpaid medical bills are the most common debt on credit reports.
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The push to address medical debt reflects Chopra's concerns about the healthcare system turning patients into debtors, similar to past problems he saw with student loans and for-profit colleges.
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Debt collectors warn cracking down on medical debt collection could lead more healthcare providers to demand upfront payment from patients. But Chopra says protecting consumers from unpayable medical debt is the priority.