The Consumer Financial Protection Bureau issued a rule barring medical debt from credit reports, a major consumer protection move just before President Biden leaves office. The rule challenges the incoming Trump administration to undo it.
The federal Consumer Financial Protection Bureau on Tuesday issued new regulations barring medical debts from American credit reports, enacting a major new consumer protection just days before President Joe Biden is set to leave office. The rules ban credit agencies from including medical debts on consumers' credit reports and prohibit lenders from considering medical information in assessing borrowers.
The move, which comes less than two weeks before President-elect Donald Trump is set to take office, represents a challenge to the new administration. The CFPB has issued a new rule barring medical debt from credit reports. The CFPB has issued a new rule barring medical debt from credit reports. But by finalizing the regulations now, the CFPB effectively dared the incoming Trump administration and its Republican allies in Congress to undo rules that are broadly popular and could help millions of people who are burdened by medical debt. 'People who get sick shouldn't have their financial future upended,' CFPB Director Rohit Chopra said in announcing the new rules.'The CFPB's final rule will close a special carveout that has allowed debt collectors to abuse the credit reporting system to coerce people into paying medical bills they may not even owe.'The regulations fulfill a pledge by the Biden administration to address the scourge of health care debt, a problem that touches anCredit reporting, a threat that has been wielded by medical providers and debt collectors to get patients to pay their bills, is the most common collection tactic used by hospitals,threaten people's access to housing and drive homelessness. People with low credit scores can also have trouble getting a loan or can be forced to borrow at higher interest rate
CONSUMER FINANCE MEDICAL DEBT CREDIT REPORTS BIDEN ADMINISTRATION TRUMP ADMINISTRATION
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