The White House Proposes Removing Medical Debt From Credit Reports

Under the proposal, consumer reporting companies would be blocked from using medical debts and collection information on consumer reports.

The Biden-Harris administration is seeking to remove medical debt from consumer credit reports.

The proposal is expected to assist in stopping “debt collectors from coercing people into paying bills they may not even owe, as well as ensure that creditors are not relying on data that is often plagued with inaccuracies and mistakes.”

Under the proposal, consumer reporting companies would be blocked from using medical debts and collection information on consumer reports. Creditors would also be barred from using medical debt for underwriting decisions.

The goal of the proposal is to reduce the negative impact that medical bills can have on people and assist them in recovering from the expenses.

Vice President Harris said this action would allow for more people to qualify for loans to purchase cars or homes as well as qualify for rent.