The Consumer Financial Protection Bureau (CFPB) implemented a rule preventing lenders from utilizing unpaid medical bills in credit history assessments for loans. This move is expected to positively impact millions of Americans' credit scores.
The Consumer Financial Protection Bureau ( CFPB ) announced a new rule prohibiting lenders from using unpaid medical bills as a factor in credit history evaluations for mortgages, car loans, or business loans. This rule aims to increase the credit score s of millions of Americans by an average of 20 points. The CFPB states that outstanding healthcare claims are not reliable indicators of an individual's ability to repay loans.
This new rule builds upon the three national credit reporting agencies' (Experian, Equifax, and TransUnion) decision last year to remove medical collections under $500 from U.S. consumer credit reports. The CFPB estimates that this rule will eliminate $49 million in medical debt from the credit reports of 15 million Americans.
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