Unpaid medical debt will no longer appear on credit reports

[Elim Garak]

Unpaid medical bills will no longer appear on credit reports, where they can block people from getting mortgages, car loans or small business loans, according to a final rule announced Tuesday by the Biden administration.

The Consumer Financial Protection Bureau rule will remove $49 billion in medical debt from the credit reports of more than 15 million Americans, according to the bureau, which means lenders will no longer be able to take that into consideration when deciding whether to issue a loan.

The change is estimated to raise the credit scores by an average of 20 points and could lead to 22,000 additional mortgages being approved every year, according to the bureau.

Vice President Kamala Harris said in a statement announcing the rule that it would be "lifechanging" for millions of families, "making it easier for them to be approved for a car loan, a home loan, or a small-business loan. ... Our historic rule will help more Americans save money, build wealth, and thrive."

"No one should be denied economic opportunity because they got sick or experienced a medical emergency," she said.

But, the Reuters news agency points out, Tuesday's announcement came despite demands from Republicans in Congress that the Biden administration stop issuing new rules with President-elect Donald Trump set to take office. That means he or his congressional allies may try to reverse the ban.

"Though Team Trump is likely to try to freeze or reverse these actions, it is not guaranteed," Jaret Seiberg, an analyst with TD Cowen Washington Research Group, said in a report. "Trump 2.0 is more populist than in 2017, which is why undoing a ban on including medical debt on credit reports or dropping an enforcement action against a credit bureau may not be a priority."

Harris also announced that states and local governments have used a sweeping 2021 pandemic-era aid package to eliminate more than $1 billion in medical debt for more than 700,000 Americans.

The administration announced plans for the rule in fall 2023.

The CFPB said medical debt is a poor predictor of an individual's ability to repay a loan. Experian, Equifax and TransUnion, the three national credit reporting agencies, said last year that they were removing medical collections debt under $500 from U.S. consumer credit reports.

"Medical debt burdens millions of families across the country and can unfairly tarnish a person's credit record, making it more difficult to qualify for an affordable loan, get a job, or even rent an apartment," Chuck Bell, advocacy program director for Consumer Reports, said in a statement. "Many consumers have medical debt on their credit reports that is inaccurate or under dispute because our medical billing and insurance reimbursement system is so complex and confusing."

The new rule from the Biden administration is set to take on the outstanding bills appearing on credit reports.

Source: Medical debt banned from credit reports by new Biden administration rule

 

[tuckgod]

Why did he wait until a week before leaving office to do this knowing it would get overturned immediately?

Because he knows the dipshyts that actually follow him think everything is a game and will count this in the win column when trying to convince people to vote Democrat in 4 years.

 

[O.T.I.S.]

Why did he wait until a week before leaving office to do this knowing it would get overturned immediately?

Because he knows the dipshyts that actually follow him think everything is a game and will count this in the win column when trying to convince people to vote Democrat in 4 years.

It will fukk up his image more if he does

It might not look like it in the mainstream media, but MAGAts are beginning to crack… word to the Vegas bomber

 

[The Realist Perspective]

That settles it. I am paying zero medical bills.

 

[tuckgod]

It will fukk up his image more if he does

It might not look like it in the mainstream media, but MAGAts are beginning to crack… word to the Vegas bomber

It will fukk up his image more if he does

It might not look like it in the mainstream media, but MAGAts are beginning to crack… word to the Vegas bomber

Its been 9 years of this.

You must know by now that he's a results driven, not image driven, person compared to his counterparts.

This was already done for most Americans years ago and non of you cared.

Can Medical Debt Impact Credit Scores | Equifax®

Learn how the changes to medical debt reporting on credit reports affects your credit scores, and actions you can take to help prevent debt from medical bills.

www.equifax.com

The only people whose debt currently negatively affects their score are people who have held more than $500 in medical debt for more than a year.

Only 30% of the insured Americans with grossly outstanding debt will get relief from this.

 

[O.T.I.S.]

Its been 12 years of this, you must know that he's a results driven, not image driven person compared to his counterparts.

This was already done for most Americans years ago and non of you cared.

Can Medical Debt Impact Credit Scores | Equifax®

Learn how the changes to medical debt reporting on credit reports affects your credit scores, and actions you can take to help prevent debt from medical bills.

www.equifax.com

The only people whose debt currently negatively affects their score are people who have held more than $500 in medical debt for more than a year.

Only 30% of the insured Americans with grossly outstanding debt will get relief from this.

Wait what

 

[tuckgod]

Wait what

Is there more to your question?

 

[Pull Up the Roots]

Why did he wait until a week before leaving office to do this knowing it would get overturned immediately?

Because he knows the dipshyts that actually follow him think everything is a game and will count this in the win column when trying to convince people to vote Democrat in 4 years.

You guys gotta educate yourselves on how your government and the rule-making process works. This change was announced back in early 2023. It's not some last-minute stunt. Federal agencies have to go through a formal process to create or change such rules. It's not something they can just flip a switch to get done. You have to draft the rule, publish the rule for public comment, review and address the feedback on it, and make sure it's strengthened to stand up to legal challenges. Tackling all of this takes time, especially when you're dealing with strong lobbying and opposition from people/industries who profit from things remaining the same.

Further, this administration has worked on other medical debt relief measures in the meantime.

Today, Vice President Harris announced a final rule by the Consumer Financial Protection Bureau to remove medical debt from consumer credit reports. This rule will reduce the burden of medical debt and ensure that patients are not denied access to credit for home mortgages, car loans, or small business loans due to unpaid medical bills.

Further, Vice President Harris announced that states and localities have leveraged American Rescue Plan (ARP) funds to support the elimination of over $1 billion in medical debt for more than 700,000 Americans. These actions build on the Vice President’s call to action for states to reduce the burden of medical debt, including by directly purchasing the debt from providers and third parties. Overall, jurisdictions are on track to eliminate roughly $15 billion in medical debt for up to nearly 6 million Americans.

FACT SHEET: Vice President Harris Announces Final Rule Removing Medical Debt from All Credit Reports | The White House

Today’s final rule will remove $49 billion in unpaid medical bills from the credit reports of 15 million Americans. In addition, the Vice President is

www.whitehouse.gov

 

[Wild self]

It will fukk up his image more if he does

It might not look like it in the mainstream media, but MAGAts are beginning to crack… word to the Vegas bomber

shyt, once Trump goes, MAGA will crumble and cannibalize itself in a beautiful fashion

 

[tuckgod]

You guys gotta educate yourselves on how your government and the rule-making process works. This change was announced back in early 2023. It's not some last-minute stunt. Federal agencies have to go through a formal process to create or change such rules. It's not something they can just flip a switch to get done. You have to draft the rule, publish the rule for public comment, review and address the feedback on it, and make sure it's strengthened to stand up to legal challenges. Tackling all of this takes time, especially when you're dealing with strong lobbying and opposition from people/industries who profit from things remaining the same.

Further, this administration has worked on other medical debt relief measures in the meantime.

FACT SHEET: Vice President Harris Announces Final Rule Removing Medical Debt from All Credit Reports | The White House

Today’s final rule will remove $49 billion in unpaid medical bills from the credit reports of 15 million Americans. In addition, the Vice President is

www.whitehouse.gov

Shut the fukk up.

 

[Traveler]

All that is going to do is now make the hospitals start taking people to court for it. Lawyers about to eat.

Not saying I agree with it Just what is probably going to happen.

 

[Ozymandeas]

Mashallah

 

[Swirv]

Why did he wait until a week before leaving office to do this knowing it would get overturned immediately?

Because he knows the dipshyts that actually follow him think everything is a game and will count this in the win column when trying to convince people to vote Democrat in 4 years.

Who are the dipshyts that oppose such relief?

 

[Born2BKing]

Republicans ain't gonna like this. They will do whatever they can to strike this down.

 

[O.T.I.S.]

Is there more to your question?

No questions at all, I just got stuck on that part