Proposed Regulation Would Remove Medical Bills from Credit Reports

On September 21, the Consumer Financial Protection Bureau (CFPB) announced the beginning of a rulemaking process to remove medical bills from Americans’ credit reports. The CFPB outlined proposals under consideration that would “help families financially recover from medical crises, stop debt collectors from coercing people into paying bills they may not even owe, and ensure that creditors are not relying on data that is often plagued with inaccuracies and mistakes.”

Consumer reporting companies would be prohibited from including medical debts and collection information on consumer reports that creditors use in making underwriting decisions. If finalized, this rule would: remove medical bills from consumers’ credit reports; stop creditors from relying on medical bills for underwriting decisions; and end coercive collection practices.