Biden administration seeks to wipe consumer medical debt off most credit reports with proposed rule

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The Biden administration is pushing to prevent medical debt from being considered in most decisions made over whether someone qualifies to rent an apartment, buy a car or take on a mortgage.

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“No one should be denied access to economic opportunity simply because they experienced a medical emergency,” Vice President Kamala Harris said during a conference call laying out the planned rule.The CFPB has said that medical debt can be a poor predictor of whether someone is likely to repay a loan. Those expenses often are not planned like a car or home purchase, and patients may have little control over the progress of a serious illness.

The three national credit reporting agencies — Experian, Equifax and TransUnion — said last year that they were removing medical collections debt under $500 from U.S. consumer credit reports.

 

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