Search here...
Investments

CFPB Bans Medical Debt On Credit Reports

By: globalinvestmentstrategy.com

Date:

Share post:


CFPB Bans Medical Debt On Credit Reports | Source: The College Investor
  • New CFPB rule will ban medical debt from appearing on consumer credit reports.
  • An estimated $49 billion in medical debt will be removed from credit reports, impacting the financial profiles of approximately 15 million Americans.
  • Lenders are now prohibited from using medical debt information in credit decisions, ensuring borrowers are assessed fairly.

The Consumer Financial Protection Bureau (CFPB) has finalized a rule to ban medical debt from credit reports, shielding millions of Americans from the financial fallout of healthcare-related expenses.

The new rule also aligns with changes made by major credit reporting agencies—Equifax, Experian, and TransUnion—which began removing certain medical debts, such as collections under $500, in 2022. These updates, coupled with new guidelines from credit scoring models like FICO and VantageScore, are expected to enhance financial opportunities for millions.

Impacts Of The Rule

The rule prohibits credit reporting companies from including medical debt and bans lenders from using such data in credit decisions. It also addresses past abuses where debt collectors leveraged credit reports to coerce patients into paying inaccurate bills.

The CFPB predicts that these changes could lead to 22,000 additional affordable mortgage approvals annually.

Furthermore, this rule can make other financial services more affordable, including rentals, insurance, and more.

How Credit Reporting Works

Credit reporting agencies, such as Equifax, Experian, and TransUnion, collect and maintain information about an individual’s credit history, including loans, credit card usage, and payment patterns. This data is used to create credit reports and credit scores, which lenders review to assess a borrower’s creditworthiness. 

Credit reports influence decisions on loan approvals, interest rates, and even employment or housing opportunities. Negative items, like unpaid debts, can lower credit scores and limit financial options. 

The lower a person’s credit score, the less likely they are to qualify for loans. Furthermore, a low credit score can make other financial activities more expensive – such as requiring a larger deposit to rent an apartment or get a cell phone, or higher rates for car insurance.

By removing medical debt, the CFPB aims to ensure credit reports more accurately reflect a consumer’s ability to repay non-medical obligations.

Credit Score Range | Source: The College Investor

Final Thoughts

This new rule should improve the credit of millions of Americans. Medical billing and medical debt is a huge issue for many Americans. In fact, we have a full guide to disputing medical billing errors because it happens so frequently and it can be so impactful.

Not having these issues show up on credit reports is a huge win.

While states like California and New York had already enacted similar protections, the CFPB’s move creates a nationwide standard. As health care costs remain a pressing issue, this rule marks a significant step in reducing the financial strain for millions of Americans.

Don’t Miss These Other Stories:

Best Student Loans And Current Rates In January 2025
How Do Student Loans Impact Your Credit Score?
How To Get A Free Credit Score Report
https://www.highcpmgate.com/f0c2i8ki?key=d7778888e3d5721fde608bfdb62fd997
Previous article
CEO of Panera parent company departs after less than 2 years
Next article
Bank CEOs see mortgage risk easing as attention turns to political uncertainty
globalinvestmentstrategy.com
globalinvestmentstrategy.comhttps://globalinvestmentstrategy.com

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Related articles

Investments

Why Investing Out-of-State Can Help You Reach Your Investment Goals Faster

<div id="page" x-data="sidebarAds(24%7C&utm_source=Bigger%20Pockets&utm_term=Bigger%20Pockets","linkTitle":"Schedule a Call Today","id":"65d4be7b89ca4","impressionCount":"716879","dailyImpressionCount":"711","impressionLimit":"878328","dailyImpressionLimit":"2780","r720x90":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-720x90-1.png","r300x250":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-300x250-1.png","r300x600":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-300x600-1.png","r320x50":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-320x50-1.png","r720x90Alt":"","r300x250Alt":"","r300x600Alt":"","r320x50Alt":""},{"sponsor":"Center Street Lending","description":"","imageURL":null,"imageAlt":null,"title":"","body":"","linkURL":"https://centerstreetlending.com/bp/","linkTitle":"","id":"664ce210d4154","impressionCount":"430602","dailyImpressionCount":"604","impressionLimit":"600000","dailyImpressionLimit":"2655","r720x90":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/05/CSL_Blog-Ad_720x90-1.png","r300x250":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/05/CSL_Blog-Ad_300x250-2.png","r300x600":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/05/CSL_Blog-Ad_300x600-2.png","r320x50":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/05/CSL_Blog-Ad_320x50.png","r720x90Alt":"","r300x250Alt":"","r300x600Alt":"","r320x50Alt":""},{"sponsor":"CV3 Financial","description":"","imageURL":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/07/Logo-512x512-1.png","imageAlt":"","title":"","body":"","linkURL":"https://cv3financial.com/financing-biggerpockets/?utm_source=biggerpockets&utm_medium=website&utm_campaign=august&utm_term=bridge&utm_content=banner","linkTitle":"","id":"66a7f395244ed","impressionCount":"230040","dailyImpressionCount":"528","impressionLimit":"636364","dailyImpressionLimit":"4187","r720x90":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/07/CV3-720x90-1.png","r300x250":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/07/CV3-300x250-1.png","r300x600":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/07/CV3-300x600-1.png","r320x50":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/07/CV3-320x50-1.png","r720x90Alt":"","r300x250Alt":"","r300x600Alt":"","r320x50Alt":""},{"sponsor":"Baselane","description":"Ad copy A","imageURL":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/09/SquareLogo-MidnightOnWhite-1.png","imageAlt":"","title":"","body":"","linkURL":"https://www.baselane.com/lp/bigger-pockets?utm_source=partner_biggerpockets&utm_medium=Content&utm_campaign=bp_blog_ad&utm_term=rebranded_v3","linkTitle":"","id":"66b39df6e6623","impressionCount":"197388","dailyImpressionCount":"447","impressionLimit":"250000","dailyImpressionLimit":"1713","r720x90":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/11/720x90.png","r300x250":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/11/300x250.png","r300x600":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/11/300x600.png","r320x50":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/11/grow_business_not_to_do_320x50.png","r720x90Alt":"","r300x250Alt":"","r300x600Alt":"","r320x50Alt":""},{"sponsor":"Baselane","description":"Ad copy B","imageURL":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/09/SquareLogo-MidnightOnWhite-1.png","imageAlt":"","title":"","body":"","linkURL":"https://www.baselane.com/lp/bigger-pockets?utm_source=partner_biggerpockets&utm_medium=Content&utm_campaign=bp_blog_ad&utm_term=rebranded_v4","linkTitle":"","id":"66b39df70adac","impressionCount":"213440","dailyImpressionCount":"523","impressionLimit":"250000","dailyImpressionLimit":"1713","r720x90":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/11/Copy-of-720x90-1.png","r300x250":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/11/Copy-of-300x250-1.png","r300x600":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/11/Copy-of-300x600-1.png","r320x50":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/11/Copy-of-320x50-1.png","r720x90Alt":"","r300x250Alt":"","r300x600Alt":"","r320x50Alt":""},{"sponsor":"","description":"","imageURL":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-Logo.png","imageAlt":"","title":"","body":"","linkURL":"https://hubs.ly/Q02LzKH60","linkTitle":"","id":"66c3686d52445","impressionCount":"231545","dailyImpressionCount":"614","impressionLimit":"500000","dailyImpressionLimit":"6173","r720x90":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-720x90-1.png","r300x250":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-300x250-1.png","r300x600":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-300x600-1.png","r320x50":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-320x50-1.png","r720x90Alt":"","r300x250Alt":"","r300x600Alt":"","r320x50Alt":""},{"sponsor":"1-800 Accountant","description":"","imageURL":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/12/Logo_Square_No-Brand-Name.png","imageAlt":"","title":"","body":"","linkURL":" https://1800accountant.com/lp/online-business-tax-preparation?utm_source=biggerpockets&utm_medium=cpc&utm_campaign=tof&utm_content=banners_feb","linkTitle":"","id":"67572ea6e4db7","impressionCount":"86581","dailyImpressionCount":"544","impressionLimit":"89616","dailyImpressionLimit":"5389","r720x90":"https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/720x90BPver1.png","r300x250":"https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/300x250BPver1.png","r300x600":"https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/300x600BPver1.png","r320x50":"https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/320x50BPver1.png","r720x90Alt":"","r300x250Alt":"","r300x600Alt":"","r320x50Alt":""},{"sponsor":"1-800 Accountant","description":"","imageURL":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/12/Logo_Square_No-Brand-Name.png","imageAlt":"","title":"","body":"","linkURL":" https://1800accountant.com/lp/online-business-tax-preparation?utm_source=biggerpockets&utm_medium=cpc&utm_campaign=tof&utm_content=banners_feb","linkTitle":"","id":"67572ea706256","impressionCount":"54746","dailyImpressionCount":"348","impressionLimit":"89616","dailyImpressionLimit":"7872","r720x90":"https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/720x90BPver2.png","r300x250":"https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/300x250BPver2.png","r300x600":"https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/300x600BPver2.png","r320x50":"https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/320x50BPver2.png","r720x90Alt":"","r300x250Alt":"","r300x600Alt":"","r320x50Alt":""},{"sponsor":"NREIG","description":"","imageURL":"https://www.biggerpockets.com/blog/wp-content/uploads/2025/01/NREIGLogo_512x512-1-1-1.png","imageAlt":"","title":"","body":"","linkURL":"https://go.nreig.com/l/1008742/2024-12-19/53l7gf","linkTitle":"","id":"677c225a7b017","impressionCount":"61856","dailyImpressionCount":"458","impressionLimit":"1000000","dailyImpressionLimit":"2874","r720x90":"https://www.biggerpockets.com/blog/wp-content/uploads/2025/01/NREIG-720x90-1.png","r300x250":"https://www.biggerpockets.com/blog/wp-content/uploads/2025/01/NREIG-300x250-1.png","r300x600":"https://www.biggerpockets.com/blog/wp-content/uploads/2025/01/NREIG-300x600-1.png","r320x50":"https://www.biggerpockets.com/blog/wp-content/uploads/2025/01/NREIG-320x50-1.png","r720x90Alt":"","r300x250Alt":"","r300x600Alt":"","r320x50Alt":""},{"sponsor":"Equity...
Make Money Online

What NOT to Use ChatGPT For as a Physician Entrepreneur

ChatGPT is the new stethoscope of entrepreneurship—everyone’s...
Mortgage

Tariff plan has mixed implications for mortgages, builders

Plans for record-setting tariffs retain some breaks for lumber and have lowered mortgage rates, but they've increased...
Banking

Personalization driving Ally’s Savings Buckets

Increased personalization and better financial management tools are driving satisfaction as more consumers rely on digital platforms...

About Us

Get the Latest Insights based on: business, finance, mortgage, credit cards, Investments and better Ways to Make Money Online

Categories

Latest news

Why Investing Out-of-State Can Help You Reach Your Investment Goals Faster

Investments 0
<div id="page" x-data="sidebarAds(24%7C&utm_source=Bigger%20Pockets&utm_term=Bigger%20Pockets","linkTitle":"Schedule a Call Today","id":"65d4be7b89ca4","impressionCount":"716879","dailyImpressionCount":"711","impressionLimit":"878328","dailyImpressionLimit":"2780","r720x90":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-720x90-1.png","r300x250":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-300x250-1.png","r300x600":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-300x600-1.png","r320x50":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-320x50-1.png","r720x90Alt":"","r300x250Alt":"","r300x600Alt":"","r320x50Alt":""},{"sponsor":"Center Street Lending","description":"","imageURL":null,"imageAlt":null,"title":"","body":"","linkURL":"https://centerstreetlending.com/bp/","linkTitle":"","id":"664ce210d4154","impressionCount":"430602","dailyImpressionCount":"604","impressionLimit":"600000","dailyImpressionLimit":"2655","r720x90":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/05/CSL_Blog-Ad_720x90-1.png","r300x250":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/05/CSL_Blog-Ad_300x250-2.png","r300x600":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/05/CSL_Blog-Ad_300x600-2.png","r320x50":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/05/CSL_Blog-Ad_320x50.png","r720x90Alt":"","r300x250Alt":"","r300x600Alt":"","r320x50Alt":""},{"sponsor":"CV3...

What NOT to Use ChatGPT For as a Physician Entrepreneur

Make Money Online 0

Tariff plan has mixed implications for mortgages, builders

Mortgage 0
Plans for record-setting tariffs retain some breaks for...

Popular news

Why Investing Out-of-State Can Help You Reach Your Investment Goals Faster

Investments 0
<div id="page" x-data="sidebarAds(24%7C&utm_source=Bigger%20Pockets&utm_term=Bigger%20Pockets","linkTitle":"Schedule a Call Today","id":"65d4be7b89ca4","impressionCount":"716879","dailyImpressionCount":"711","impressionLimit":"878328","dailyImpressionLimit":"2780","r720x90":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-720x90-1.png","r300x250":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-300x250-1.png","r300x600":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-300x600-1.png","r320x50":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-320x50-1.png","r720x90Alt":"","r300x250Alt":"","r300x600Alt":"","r320x50Alt":""},{"sponsor":"Center Street Lending","description":"","imageURL":null,"imageAlt":null,"title":"","body":"","linkURL":"https://centerstreetlending.com/bp/","linkTitle":"","id":"664ce210d4154","impressionCount":"430602","dailyImpressionCount":"604","impressionLimit":"600000","dailyImpressionLimit":"2655","r720x90":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/05/CSL_Blog-Ad_720x90-1.png","r300x250":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/05/CSL_Blog-Ad_300x250-2.png","r300x600":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/05/CSL_Blog-Ad_300x600-2.png","r320x50":"https://www.biggerpockets.com/blog/wp-content/uploads/2024/05/CSL_Blog-Ad_320x50.png","r720x90Alt":"","r300x250Alt":"","r300x600Alt":"","r320x50Alt":""},{"sponsor":"CV3...

What NOT to Use ChatGPT For as a Physician Entrepreneur

Make Money Online 0

Tariff plan has mixed implications for mortgages, builders

Mortgage 0
Plans for record-setting tariffs retain some breaks for...

© 2024. All Rights Reserved.