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Biden Administration Proposes Regulations to Eliminate $7 Billion in Medical Debt from Credit Reports

Jun 11, 2024, 08:19 PM

The Biden administration is proposing new regulations to eliminate medical debt from credit reports, a move that aims to provide financial relief to millions of Americans. The Consumer Financial Protection Bureau (CFPB) is leading this initiative, which would prevent unpaid medical bills from being counted in credit scores and restrict how lenders and credit reporting companies use consumers' medical debt information. This proposal is expected to eliminate $7 billion in medical debt held by nearly 3 million Americans. Vice President Kamala Harris announced that the forthcoming regulations will remove medical debt from the credit reports of tens of millions of Americans, emphasizing that no one should be financially burdened due to medical emergencies. The CFPB is also proposing a ban on lenders repossessing wheelchairs, prosthetic limbs, and other medical devices. The Biden-Harris Administration has also delivered over $650 million in medical debt relief, with an additional $7 billion of relief on the way.