A federal judge has ruled that medical debt can be included on credit reports, overturning a previous rule by the Consumer Finance Protection Bureau (CFPB). This ruling is likely to complicate access to mortgages and loans for many Americans. The CFPB's original rule aimed to remove unpaid medical bills from credit reports, potentially enabling around 22,000 additional mortgages annually. The judge found that the CFPB exceeded its authority and cited the Fair Credit Reporting Act, emphasizing that only Congress can write such laws.
"People who get sick shouldn't have their financial future upended," CFPB Director Rohit Chopra said when announcing the new rules. The CFPB's final rule will close a special carveout that has allowed debt collectors to abuse the credit reporting system to coerce people into paying medical bills they may not even owe.
The ruling is likely going to make it harder for many people to get a mortgage or other loan. The rule was expected to result in the approval of roughly 22,000 additional mortgages each year and would have raised the credit scores of people who are carrying medical debt by an average of 20 points.
#medical-debt #credit-reporting #consumer-finance-protection-bureau #mortgages #financial-regulations
Collection
[
|
...
]