Biden Administration's Proposed Rule Aims to Ban Medical Debt from Credit Reporting

Friday, 9 August 2024, 05:08

The Biden Administration has proposed a new rule that seeks to ban the inclusion of medical debt in consumer credit reports. This significant change would prevent creditors from using medical bills as a basis for underwriting decisions and would limit the practices of debt collectors. If implemented, this rule could lead to improved credit scores for millions of Americans burdened by medical bills, helping them to secure loans and access housing more easily.

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Biden Administration's Proposed Rule

The proposed rule aims to ban medical debt from being a part of consumer credit reports.

Key Implications

Exclusion of Medical Bills: Creditors will no longer be able to utilize medical bills for underwriting decisions.
Regulation of Debt Collectors: The rule seeks to restrict certain practices by debt collectors that are deemed coercive.

This rule, if finalized, has the potential to significantly improve credit scores for many individuals impacted by medical debt.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

Biden Administration's Proposed Rule

Key Implications

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