AP Photo/Jacquelyn Martin
The proposal would also prevent creditors from using medical bills when deciding on loans and stop debt collectors from using credit ratings to pressure people with health care-related debt.
WASHINGTON (AP) — Vice President Kamala Harris said Thursday that the Biden administration is taking the first steps toward removing medical bills from people’s credit scores, which could improve ratings for millions of people.
Harris said that would make it easier for them to obtain an auto loan or a home mortgage. Roughly one in five people report having medical debt. The vice president said the Consumer Financial Protection Bureau is beginning the rulemaking process to make the change.
The agency said in a statement that including medical debt in credit scores is problematic because “mistakes and inaccuracies in medical billing are common.”
“Access to health care should be a right and not a privilege,” Harris told reporters in call to preview the action. “These measures will improve the credit scores of millions of Americans so that they will better be able to invest in their future.”
The announcement comes after a long push by the Biden administration to minimize the importance of medical debt in how people’s creditworthiness is rated. CFPB director Rohit Chopra said the credit reporting companies Equifax, TransUnion and Experian announced last March that they would stop reporting “some but not all medical bills on an individual’s credit report.”
In addition to pulling medical bills from credit reports, the proposal would prevent creditors from using medical bills when deciding on loans and stop debt collectors from using credit ratings to pressure people with health care-related debt. The government will hear feedback from small businesses and then issue a notice of a proposed rulemaking at some point next year.
Author
Politics
New Michigan law refocuses classrooms on student growth—not the highest test scores
A new state law signed by Gov. Gretchen Whitmer will cut ‘red tape’ in public schools and ensure teachers spend more time teaching their students...
Michigan to join effort to regulate deepfake political ads
LANSING—Michigan is joining an effort to curb deceptive uses of artificial intelligence and manipulated media through state-level policies as...
12 candidates run for two empty House seats in Michigan
BY ANNA LIZ NICHOLS, MICHIGAN ADVANCE MICHIGAN—Six candidates apiece have filed for the two open seats in the state House of Representatives, with...
Local News
That one time in Michigan: When we created Little Bavaria
The story of Frankenmuth. With Thanksgiving behind us, many people around the state are already in full-on holiday mode, putting up lights and their...
Michigan deer accidents at decade high—check the hotspots
These Michigan counties logged over 1,000 vehicle crashes involving deer in 2022. Here's what you can do to help avoid them. Does it ever seem like...
