Medical Debt Struck From Credit Reports in Final CFPB Rule (1)

Most medical debt will be scrapped from consumer credit reports under a final US rule implementing a Biden administration priority, but Republican lawmakers and the credit reporting industry will likely push to overturn the changes.

The Consumer Financial Protection Bureau’s rule, finalized Tuesday, eliminates an exemption in the Fair Credit Reporting Act that’s allowed third-party debt collectors to get medical debt placed on credit reports. The rule, should it go into force, will improve affected Americans’ credit scores by an average of 20 points, the CFPB says.

“People who get sick shouldn’t have their financial future upended,” CFPB Director ...