Good news for individuals and families experiencing medical debit – including and especially family caregivers!
According to the recent CFPB rule, medical debt will no longer appear on credit reports at all, meaning individuals & caregivers will not see any medical debt reflected on their credit reports, regardless of the amount or duration of the debt. This effectively removes all time limits on how long medical debt can appear on credit reports as it will not be included at all. Of special note, by prohibiting medical debt from credit reports and barring lenders from using unpaid/pending medical bills in credit decisions, this new rule marks an important milestone to ensuring better financial outcomes for family caregivers and those they support.
Key points about the rule include the following points.
1. No medical debt on credit reports.
The new rule prohibits credit reporting agencies from including any medical debt on credit reports sent to lenders.
2. Reasoning
The CFPB considers medical debt a poor indicator of creditworthiness and believes this change will protect consumers from the negative impacts of medical bills on their credit scores.
3. Effective date
The rule was finalized in January 2025 and is expected to go into effect within a few months.
Visit the CFPB website for more information:
To read the complete ruling, click on the link below:
https://files.consumerfinance.gov/f/documents/cfpb_med-debt-final-rule_2025-01.pdf
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