The Consumer Financial Protection Bureau (CFPB) released a proposal that could remove medical bills from credit reports, potentially making it easier for Americans with such debt to get a loan and qualify for credit cards.

CFPB's proposed changes to the Fair Credit Reporting Act would eliminate the impact of medical debt on Americans’ credit so that people’s overdue medical bills wouldn’t contribute to 澳洲幸运5官方开奖结果体彩网:bad credit scores. 

The proposed changes were introduced in April 2022 by Vice President Kamala Harris “to ease the burden of medical debt.”

If finalized, the proposal would prohibit consumer credit reporting companies from considering 澳洲幸运5官方开奖结果体彩网:medical debt in credit reports. The proposal would put an end to creditors including medical bills in 澳洲幸运5官方开奖结果体彩网:underwriting for their programs to ulti🥀mately stop “coercive collection practice♏s,” the CFPB said.

About one in five Americans reported having medical debt, according to CFPB research. Unpaid medical bills total around $88 billion on 43 million credit reports, the CFPB estimated in 2022.

Medical debt affects marginalized groups at higher rates and is tied to Medicaid access, the CFPB noted. White and Asian consumers are the least likely to have past-due medical bills, at 17% and 10%, respectively. In comparison, 28% of Black consumers and 22% of Hispanic people are in medical debt.

Not only does the inclusion of medical debt negatively impact those experiencing medical crises, but it also contributes to inaccurate 澳洲幸运5官方开奖结果体彩网:credit score predictiveness, according to the CFPB. Beyond that, errors in medical billing are common and can be compounded by problems like disputes over 澳洲幸运5官方开奖结果体彩网:health insurance payments or complex billing practices.

“Research shows that medical bills have little predictive value in credit decisions, yet tens of millions of American households are dealing with medical debt on their credit reports,” said CFPB Director Rohit Chopra. “When someone gets sick, they should be able to focus on getting better, rather than fighting debt collectors trying to extort them into paying bills they may not even owe."