Biden Proposes Dropping Medical Debt From Credit Reports
What specific changes does the Biden administration propose regarding the handling of medical debt in credit reports?
The Biden administration proposes removing medical debt from the credit reports of more than 15 million Americans. This change aims to make it easier for them to qualify for car, home, and small-business loans, improving their financial health and well-being. The proposed rule would forbid health care providers to share medical debt with loan providers and prohibit those providers from factoring in medical information when it came to granting loans. Vice President Kamala Harris emphasized that medical debt makes it more difficult for millions of Americans to be approved for various loans, and this change is intended to alleviate that issue.
How would the proposed rule impact the relationship between health care providers and loan providers regarding the sharing of medical debt information?
The proposed rule would have a significant impact on the relationship between health care providers and loan providers regarding the sharing of medical debt information. If enacted, the rule would forbid health care providers to share medical debt with loan providers. This means that medical providers would no longer be able to report unpaid bills to credit bureaus, which would prevent negative marks from appearing on consumers' credit reports due to medical debt.
Moreover, the rule would prohibit loan providers from factoring in medical information when deciding whether to grant loans. This means that loan providers would not be able to consider medical debt or medical collections information when evaluating borrowers' loan applications.
The aim of these changes is to prevent medical debt from impacting consumers' credit scores and to make it easier for Americans to qualify for loans such as car, home, and small-business loans. Vice President Kamala Harris stated that the move would improve "the financial health and well-being of millions of Americans."
How many Americans are estimated to be affected by the proposed removal of medical debt from credit reports?
The proposed removal of medical debt from credit reports is estimated to affect more than 15 million Americans. This change would make it easier for them to qualify for car, home, and small-business loans, ultimately improving their financial health and well-being.