CFPB Proposes Rule To Remove Medical Debt From Credit Reports

The Consumer Financial Protection Bureau (CFPB) released a proposed rule on June 11 that it says would remove $49 billion in medical debt from the credit reports of 15 million people.

The proposed rule would end the exception that allows creditors to use medical debts in their credit decisions. The Fair and Accurate Credit Transactions Act of 2003 (FACT Act) restricts creditors from using medical information to determine credit eligibility. However, in 2005, a regulatory exception was created to allow creditors to use medical information under certain conditions, including when the information is the type that is routinely used in making credit eligibility determinations.

Additional information can be found here:

https://www.consumerfinance.gov/about-us/newsroom/cfpb-proposes-to-ban-medical-bills-from-credit-reports/