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The Biden administration Tuesday announced a new from credit reports, potentially helping who struggle to pay their medical bills. The new rule, which was proposed by the Consumer Financial Protection Bureau (CFPB), aims to bring relief to patients who have had trouble getting approved for loans, renting an apartment, getting a job and being able to afford everyday essentials due to medical debt. The CFPB is a government agency whose goal is to make financial markets fair for Americans.

"The CFPB is seeking to end the senseless practice of weaponizing the credit reporting system to coerce patients into paying medical bills that they do not owe,” CFPB Director Rohit Chopra said . "Medical bills on credit reports too often are inaccurate and have little to no predictive value when it comes to repaying other loans." Here’s what the new proposal might mean for you and your wallet.



advances an initiative by Experian, Equifax and TransUnion in 2022. The consumer reporting agencies that went into collections from credit reports once it had been paid off and eliminated medical debt balances . The new rule wipes away medical debt from all credit reporting in the U.

S. for the remaining with an outstanding $49 billion of medical debt in collections. Under the new proposal: Consumer reporting companies like Experian, Equifax and TransUnion would be banned from including medical debts and collection information on credit reports.

Creditors use that information to make underwriting dec.

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