The Consumer Financial Protection Bureau (CFPB) recently proposed a rule that would remove medical bills from most credit reports. In addition, the new rule would prevent debt collectors from using the credit reporting system to collect debt. The CFPB says the new rule would remove as much as $49 billion of medical debts that they say unjustly lowers credit scores for 15 million people.
“The CFPB is seeking to end the senseless practice of weaponizing the credit reporting system to coerce patients into paying medical bills that they do not owe,” said CFPB Director Rohit Chopra. “Medical bills on credit reports too often are inaccurate and have little to no predictive value when it comes to repaying other loans.”
Click here to read the full release at the CFPB.
