Biden Administration Proposes Banning Medical Debt From Credit Reports

The rule would reduce the amount of people in the U.S. with medical debt listed on their credit reports to zero, down from 46 million in 2020.

The Biden Administration has proposed to ban medical debt from credit reports.

The rule would reduce the amount of people in the U.S. with medical debt listed on their credit reports to zero, down from 46 million in 2020.

The move is expected to improve the financial health and well-being of millions of Americans.

The Administration calculates that if the rule is enforced, it would raise affected credit scores by an average of 20 points. It could also lead to the approval of nearly 22,000 additional mortgages every year as a result.

The rule was released through the Consumer Financial Protection Bureau which said, “medical bills on credit reports too often are inaccurate and have little to no predictive value when it comes to repaying other loans.”

The proposal will be open to comments until August 12.