Biden Administration Proposes New Rules to Eliminate Medical Debt Impact on Consumer Credit

The Biden administration and the Consumer Financial Protection Bureau want to remove medical debt completely from consumer credit reports through new proposed rules. Fifty-eight percent of all third-party debt collection on credit reports is for medical bills, and a study from the Medical Billing Advocates of America estimates up to 80% of medical bills have errors. The proposals would prohibit reporting agencies like Equifax, TransUnion, and Experian from including any medical debts or collections on credit reports. It would also stop creditors from using medical bills in underwriting decisions.