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.
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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.
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This is Samantha Shares and we Thank you for listening.