POLITICS NEWS – Medical debt removed from credit reports under Biden administration

Laila Kirkpatrick, Staff Writer

Vice President Kamala Harris announced a landmark reform that removes medical debt from credit reports. The Consumer Financial Protection Bureau (CFPB) has erased $49 billion of unpaid medical debt from the credit histories of over 15 million Americans.

The new rule also bans the inclusion of medical debt on credit reports moving forward. Harris emphasized that “no one should be denied economic opportunity because they got sick or experienced a medical emergency.”

The CFPB estimates the change will help 22,000 people annually secure mortgage approvals and boost credit scores by an average of 20 points. This initiative is expected to provide significant economic relief, allowing easier access to loans for cars, homes, and small businesses.