Laila Kirkpatrick, Staff Writer
The stalling of the Consumer Financial Protection Bureau has left millions of Americans vulnerable to medical debt affecting their credit reports. However, a nonprofit in Washington, D.C., has stepped in to fill the gap. Tzedek DC, in partnership with the New Mexico Center on Law and Poverty, has asked a federal judge for permission to defend a federal rule that keeps medical debt off credit reports.
“This is an issue where 15 million Americans’ rights are affected, and the amount of money involved is staggering,” said Ariel Levinson-Waldman, founding director of Tzedek DC. “We’re talking about $49 billion of medical debt sitting on credit reports—and that is harming Americans every day.” Levinson-Waldman is representing Harvey Coleman, who was denied financing for a cell phone due to medical debt. She noted that the debt is also preventing Coleman from starting his own business.
Unlike other types of debt, medical debt often results from emergencies, making it difficult for individuals to manage or avoid. Levinson-Waldman emphasized the need for stronger consumer protections to prevent financial hardship caused by medical bills.
