CFPB Finalizes Rule to Remove Medical Bills from Credit Reports
Samantha: Hello, this is Samantha Shares.
This episode covers the C F P B's new
rule on medical debt and credit reporting.
The following is an audio version
of the C F P B's announcement.
This podcast is educational
and is not legal advice.
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And now the announcement:
Today, the Consumer Financial
Protection Bureau announced a final
rule that will remove approximately
forty-nine billion dollars in medical
bills from the credit reports of
about fifteen million Americans.
The C F P B's action will ban
the inclusion of medical bills on
credit reports used by lenders and
prohibit lenders from using medical
information in their lending decisions.
Director Rohit Chopra expressed
that people who get sick shouldn't
have their financial future upended.
The rule will close a special
carveout that previously allowed debt
collectors to use the credit reporting
system to coerce people into paying
medical bills they may not even owe.
The C F P B's research has shown
that a medical bill on someone's
credit report poorly predicts
whether they will repay a loan.
With this new rule, approximately
twenty-two thousand additional, affordable
mortgages could be approved yearly.
Americans with medical debt on
their credit reports could see
their credit scores rise by
an average of twenty points.
This follows changes made by Equifax,
Experian, and TransUnion, who previously
announced they would remove certain
medical debts from credit reports.
The rule becomes effective sixty days
after publication in the Federal Register.
This concludes the announcement.
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This is Samantha Shares and
we Thank you for listening.
