CFPB Finalizes Rule to Remove Medical Bills from Credit Reports

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CFPB Finalizes Rule to Remove Medical Bills from Credit Reports

Today, the Consumer Financial Protection Bureau announced a final rule that will remove approximately forty-nine billion dollars in medical bills from the credit reports of about fifteen million Americans. The C F P B's action will ban the inclusion of medical bills on credit reports used by lenders and prohibit lenders from using medical information in their lending decisions.

Director Rohit Chopra expressed that people who get sick shouldn't have their financial future upended. The rule will close a special carveout that previously allowed debt collectors to use the credit reporting system to coerce people into paying medical bills they may not even owe.

The C F P B's research has shown that a medical bill on someone's credit report poorly predicts whether they will repay a loan. With this new rule, approximately twenty-two thousand additional, affordable mortgages could be approved yearly. Americans with medical debt on their credit reports could see their credit scores rise by an average of twenty points.

This follows changes made by Equifax, Experian, and TransUnion, who previously announced they would remove certain medical debts from credit reports. The rule becomes effective sixty days after publication in the Federal Register.

This concludes the announcement.

If your Credit union could use assistance with your exam, reach out to Mark Treichel on LinkedIn, or at mark Treichel dot com. This is Samantha Shares and we Thank you for listening.

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Samantha: Hello, this is Samantha Shares.

This episode covers the C F P B's new
rule on medical debt and credit reporting.

The following is an audio version
of the C F P B's announcement.

This podcast is educational
and is not legal advice.

We are sponsored by Credit Union
Exam Solutions Incorporated, whose

team has over two hundred and
forty years of National Credit

Union Administration experience.

We assist our clients with N C
U A so they save time and money.

If you are worried about a recent,
upcoming or in process N C U A

examination, reach out to learn how they
can assist at Mark Treichel DOT COM.

Also check out our other podcast called
With Flying Colors where we provide tips

on how to achieve success with N C U A.

And now the announcement:

Today, the Consumer Financial
Protection Bureau announced a final

rule that will remove approximately
forty-nine billion dollars in medical

bills from the credit reports of
about fifteen million Americans.

The C F P B's action will ban
the inclusion of medical bills on

credit reports used by lenders and
prohibit lenders from using medical

information in their lending decisions.

Director Rohit Chopra expressed
that people who get sick shouldn't

have their financial future upended.

The rule will close a special
carveout that previously allowed debt

collectors to use the credit reporting
system to coerce people into paying

medical bills they may not even owe.

The C F P B's research has shown
that a medical bill on someone's

credit report poorly predicts
whether they will repay a loan.

With this new rule, approximately
twenty-two thousand additional, affordable

mortgages could be approved yearly.

Americans with medical debt on
their credit reports could see

their credit scores rise by
an average of twenty points.

This follows changes made by Equifax,
Experian, and TransUnion, who previously

announced they would remove certain
medical debts from credit reports.

The rule becomes effective sixty days
after publication in the Federal Register.

This concludes the announcement.

If your Credit union could use assistance
with your exam, reach out to Mark Treichel

on LinkedIn, or at mark Treichel dot com.

This is Samantha Shares and
we Thank you for listening.