CFPB Removes $49 Billion In Medical Debt From Credit Reports, Boosting Financial Access For 15 Million Americans

The Consumer Financial Protection Bureau has announced significant changes to how medical debt affects consumers' financial health. Medical bills will no longer appear on credit reports or factor into lending decisions, eliminating $49 billion in medical debt from the credit records of 15 million Americans. This policy aims to prevent consumers from facing financial setbacks due to medical billing complexities and inaccuracies. Previously, medical debt often hindered access to mortgages and credit despite consumers having otherwise strong credit histories. Affected consumers can expect an average 20-point credit score increase, enabling 22,000 additional Americans to secure affordable mortgages annually.