The Biden administration announced new rules Tuesday that would prevent medical debt from factoring into whether someone qualifies to rent an apartment, buy a car, or take on a mortgage. The Consumer Financial Protection Bureau said the changes would remove medical bills from credit reports and prevent lenders from making decisions based on medical information, per the AP. The proposed rules also would prevent lenders from repossessing medical devices like wheelchairs if people cannot repay a loan. The changes are expected to be finalized early next year.
“No one should be denied access to economic opportunity simply because they experienced a medical emergency,” Vice President Kamala Harris said during a conference call. CFPB Director Rohit Chopra said the rule changes would prevent debt collectors “from using the credit report as a cudgel” to force people to pay bills they may not owe. The agency has said previously that medical debt can be a poor predictor of whether someone is likely to repay a loan.
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Article URL : https://www.newser.com/story/351546/medical-debt-may-be-scrubbed-from-credit-reports.html