Biden administration to remove medical debt from credit reports
(NBC, KYMA/KECY) - Medical debt could soon be removed from credit reports as the Biden administration has announced an initiative to remove an estimated $49 billion in medical debts from credit reports of roughly 15 million Americans.
The new rule from the Consumer Financial Protection Bureau (CFPB) would ban the inclusion of medical bills on credit reports and would bar lenders from using medical information when they make lending decisions.
Previous research by the agency found that medical debt factors into thousands of denied mortgage applications.
The agency predicts the new rule will enable the approval of an estimated 22,000 additional mortgages every year.
The average American with medical debt on a credit report could see their credit score rise by nearly 20 points.
