The Biden-Harris administration is exploring ways to remove medical debt from consumer credit reports, in an effort to reduce the financial burden of unexpected medical expenses. The Consumer Financial Protection Bureau (CFPB) believes that this proposal would help to prevent debt collectors from coercing people into paying bills they may not owe, and to ensure that creditors are not relying on inaccurate or incomplete data when making lending decisions.
Many consumer advocates support this proposal, arguing that medical debt should not be treated the same as other types of debt, such as credit card debt. Medical debt is often incurred through no fault of the individual, and it can be difficult to pay off, especially for people who have low incomes or who are struggling with health problems.
The CFPB is currently soliciting feedback from the public on this proposal. If it is finalized, it would be a major victory for consumers and would help to alleviate the financial burden of medical debt.
