Biden Administration Finalizes Ban on Medical Debt in Credit Reports

The new rule, set to take effect in two months, aims to raise credit scores for millions but faces potential challenges under the incoming Trump administration.

The Consumer Financial Protection Bureau (CFPB) has finalized a rule banning medical debt from being included in credit reports, potentially benefiting 15 million Americans.
The rule is expected to increase credit scores by an average of 20 points and lead to the approval of approximately 22,000 additional mortgages annually.
Advocates argue the change will reduce financial barriers for families, particularly people of color, who are disproportionately affected by medical debt collections.
Critics, including Republican lawmakers and financial industry groups, claim the rule could increase financial risk and make credit more expensive for consumers.
The rule's future is uncertain as it will take effect after the Trump administration assumes office, raising concerns about enforcement and potential legal challenges.