Official announcement from the Consumer Financial Protection Bureau (CFPB) or relevant government body

Biden Administration Proposes Rule to Ban $49 Billion in Medical Debt from Credit Reports of 15 Million Americans

Jun 12, 2024, 12:00 AM

The Biden administration has formally proposed a rule to ban medical debt from being included in credit reports. This sweeping change aims to improve the financial standing of millions of Americans by preventing medical debt from negatively impacting their credit scores. The Consumer Financial Protection Bureau (CFPB) announced that the new rule would remove $49 billion in medical bills from the credit reports of 15 million Americans. This initiative is expected to boost credit scores by an average of 20 points and lead to the approval of approximately 22,000 additional mortgages each year. Vice President Kamala Harris highlighted that the rule would reduce the number of people with medical debt on their credit reports to zero, down from 46 million in 2020. The proposal is part of the administration's broader effort to address economic challenges faced by households and improve access to housing and loans.