The CFPB wants to eliminate medical debt on credit reports of millions of Americans. (iStock)
Medical bills may soon be removed from many credit reports. The Consumer Financial Protection Bureau (CFPB) just proposed a rule that would eliminate medical debt from credit reports in an attempt to prevent debt collectors from using the reporting system to get people to pay.
The rule also intends to create higher levels of privacy for individuals with medical debt and increase the number of loan approvals. In the past, credit reporting companies could share medical debt with lenders, who would consider these debts in their lending decisions. This led to a long list of denials for borrowers facing high levels of medical debt, something many consumers can’t control.
“The CFPB is seeking to end the senseless practice of weaponizing the credit reporting system to coerce patients into…
