The Biden administration’s final rule eliminates unpaid medical debt from credit reports, impacting over 15 million Americans and removing $49 billion in debt. This change, expected to boost credit scores by an average of 20 points, will prevent lenders from using medical debt in loan decisions. The rule follows the credit bureaus’ prior action of removing medical collections under $500 and is projected to increase mortgage approvals significantly. This action aims to address the inequity of individuals facing financial hardship due to medical expenses.
Read More
This article is protected by copyright held by Fortune Media IP Limited. Its use is governed by the site’s Terms of Use and Privacy Policy. The FORTUNE trademark is registered domestically and internationally. The site may include affiliate links, and offers are subject to change.
Read More
The Biden administration’s recent move to ban medical debt from credit reports is a significant step towards addressing a long-standing problem in the American healthcare system. This action directly impacts millions of Americans burdened by medical debt, a situation often arising through no fault of their own.
This initiative aims to alleviate the financial strain on individuals struggling to manage healthcare costs. High medical expenses frequently result in unpaid bills, which then negatively affect credit scores, creating a vicious cycle of financial hardship. By removing this type of debt from credit reports, the administration hopes to give individuals a fresh start and a fairer chance to rebuild their financial lives.… Continue reading
John Q. Hosedrinker 
Matt Underwood