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The move would remove medical debt from the credit reports of more than 15 million Americans, which would raise their credit scores by an average of 20 points, according to an administration fact sheet.
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The Biden administration Tuesday announced a new proposed rule to erase medical debt from credit reports, potentially helping an estimated 100 million Americans who struggle to pay their medical bills. The new rule, which was proposed by the Consumer Financial Protection Bureau (CFPB), aims to bring relief to patients who have had trouble getting approved for loans, renting an apartment, getting a job and being able to afford everyday essentials due to medical debt. The CFPB is a government agency whose goal is to make financial markets fair for Americans.
The Consumer Financial Protection Bureau said Tuesday it is planning a rule that would remove medical bills from credit reports and prevent lenders from making decisions based on medical information.
The U.S. Consumer Financial Protection Bureau says the move would remove up to US$49 billion in medical debts from the credit reports of 15 million Americans.
The proposed rule also would prevent lenders from repossessing medical devices such as wheelchairs if people cannot repay a loan.