By Consumers for Quality Care, on October 4, 2023
The Biden administration is working to drop medical debt from consumers’ credit reports, according to the Associated Press.
Last month, Vice President Kamala Harris announced that the Consumer Financial Protection Bureau (CFPB) was beginning the rule making process to make this initiative a reality, saying that, “these measures will improve the credit scores of millions of Americans so that they will be able to invest in their future.”
According to the CFPB, “mistakes and inaccuracies in medical billing are common.” But when these mistakes are included in credit scores the consequences can be devastating for consumers. This rule change would instantly raise credit scores for millions of Americans, increasing their ability to acquire a car loan or home mortgage.
The announced rule changes come after continued effort by the Biden administration to reduce the weight medical debt has on an individual’s credit score. Earlier in the year, the major U.S. credit companies announced they would stop reporting some, but not all, medical debts in credit reports.
Medical debt should not hamper consumers from living their lives. CQC applauds these efforts and urges more collaboration from both public and private entities to continue to find ways to address the burden of medical debt on millions of Americans.