"Biden's Plan: Boosting Credit Scores by Erasing Medical Debt"

The Biden administration plans to remove medical bills from credit reports through a proposed rule change by the Consumer Financial Protection Bureau (CFPB). The rule would prohibit consumer reporting agencies from including medical debts and collection information on consumer reports used by creditors. It aims to prevent debt collectors from using the credit reporting system to pressure consumers into paying questionable debts. However, creditors could still access medical bill information for other purposes, such as verifying the need for medical forbearances or evaluating loan applications for medical services. The CFPB's analysis found that medical billing data on credit reports is less predictive of future repayment and often contains mistakes and inaccuracies. The proposed rule will undergo a public comment period before a final rule is proposed.