The finalized new rule will prohibit loan providers from using medical information while making lending decisions. It targets the impact of medical debt on eligibility for loans.
With the new regulation, Americans with medical debt could see their credit scores increase by an average of 20 points, potentially allowing them to secure more loans.
Rohit Chopra, the bureau's director, stated, 'People who get sick shouldn't have their financial future upended,' emphasizing the rule’s intent to prevent undue financial harm.
The C.F.P.B. estimates that the rule will remove approximately $49 billion in medical bills from credit reports, addressing inaccuracies and abusive practices in debt collection.
#consumer-financial-protection-bureau #medical-debt #credit-reports #financial-regulations #biden-administration
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