Biden Administration Targets Medical Debt in Credit Reports (1)

Medical debt would be scrubbed from consumers’ credit reports under a proposal financial regulators are considering, an effort to aid millions of US households grappling with hefty outstanding bills.

The US Consumer Financial Protection Bureau said Thursday it’s starting to fashion a rule that would ban credit-reporting companies from including the debt, while also stopping lenders from considering it when deciding whether to allow a consumer to borrow. The rule would also halt coercive repayment practices, according to a CFPB statement Thursday.

CFPB Director Rohit Chopra

Photographer: Ting Shen/Bloomberg

“Research shows that medical bills have little predictive value in credit decisions, yet tens of millions of ...