CFPB proposes removal of medical debt from credit

The Consumer Financial Protection Bureau proposed a rule prohibiting medical debt and medical bills from credit reports. The proposed rule amends Regulation V, which implements the Fair Credit Reporting Act.

The Bureau stated: “For tens of millions of consumers, medical debt is an unexpected and unwanted expense that can lead to financial hardships. The CFPB is proposing this rule to address concerns that information about medical debt is not necessary and appropriate for credit underwriting and, as a result, does not warrant an exception to the medical information privacy protections established by Congress.”

The CFPB is requesting public comment on the proposal. The public comment period ends Aug. 12. Read more on the proposal here.