Additional Coverage:
- New federal rule will remove medical debt from credit reports (newsbreak.com)
Medical Debt Removal from Credit Reports
The Consumer Financial Protection Bureau (CFPB) has implemented a new rule that will remove medical debt from the credit reports of millions of Americans. This move could erase up to $49 billion in unpaid medical bills and boost credit scores by an average of 20 points.
Benefits for Borrowers
The rule is expected to help borrowers qualify for mortgages and other loans more easily. Vice President Kamala Harris emphasized that no one should face economic setbacks due to medical emergencies.
Industry Reaction
Major credit reporting agencies have already taken voluntary steps to remove medical debt. However, the final rule will take effect in March, subject to potential legal challenges.
Opposition from Debt Collection Groups
Debt collection industry groups have expressed opposition to the change, arguing that it reduces the consequences for unpaid bills and could limit access to credit for those in need.
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- New federal rule will remove medical debt from credit reports (newsbreak.com)