News Release: Removal of Medical Debt From Credit Reports Will Curb Abuses
The proposal by the Consumer Financial Protection Bureau to eliminate medical debt on credit reports would, if fully implemented, curb harmful practices such as distorted credit reports and abusive debt collection. As part of a broader initiative to improve the credit reporting system, the CFPB has proposed a new rule that would stop credit reporting agencies from including medical debts and collection information on consumer credit reports, and prohibit the information from being considered in underwriting decisions. The CFPB is now seeking public comment on this consumer protection proposal.