New federal rule will remove medical debt from credit reports
In a major change that could affect millions of Americans' credit scores, the Consumer Financial Protection Bureau on Tuesday finalized a rule to remove medical debt from consumer credit reports. The rule would erase an estimated $49 billion in unpaid medical bills from the credit reports of roughly 15 million Americans, the CFPB said.
Credit report change: Some bad debt no longer allowed on credit reports, according to new rule
The rule, announced by the Consumer Financial Protection Bureau, prohibits unpaid medical bills from appearing on credit reports used to determine if people qualify for loans on things like homes and autos. The change will remove some $49 billion in medical debt from the credit reports of more than 15 million Americans, according to the CFPB.
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