Biden Admin Proposes Banning Medical Debt From Credit Reports

The change could help consumers who have medical debt but want to get auto loans and mortgages.
Biden Admin Proposes Banning Medical Debt From Credit Reports
A doctor holds his stethoscope in this file photo. Dirk Waem/Belga Mag/AFP via Getty Images
Bill Pan
Bill Pan
Reporter
|Updated:
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The Biden administration is rolling out proposed rules that would stop medical debt from being used in credit score reports, a change that could help many consumers qualify for auto loans or mortgages.

The proposal was announced June 11 by the Consumer Financial Protection Bureau (CFPB). It would stop credit reporting companies from sharing medical debts with lenders and prohibit lenders from making lending decisions based on medical information.