Official statements or actions taken by major credit reporting agencies, reported by financial news outlets

Biden Administration Removes Medical Debt from Credit Reports, Affecting 15 Million Americans

Jan 7, 2025, 04:45 PM

The Biden administration announced on Tuesday, January 7, 2025, that unpaid medical bills will no longer appear on consumer credit reports, a move expected to affect millions of Americans. The Consumer Financial Protection Bureau (CFPB) finalized a rule that will remove an estimated $49 billion in medical bills from the credit reports of about 15 million Americans. Vice President Kamala Harris stated, "No one should be denied economic opportunity because they got sick or experienced a medical emergency." CFPB Director Rohit Chopra said the reforms will end the practice of parking medical bills on credit reports and block lenders from repossessing prosthetic limbs and other medical devices. The change is estimated to raise credit scores by an average of 20 points, potentially leading to 22,000 more mortgages being approved annually. The new rule also prohibits lenders from using medical information in their decision-making. However, Republican lawmakers and the credit reporting industry may push to overturn the changes.