U.S. consumers will no longer have medical debt appear on their credit reports under a new rule the Biden administration finalized Tuesday.
The change, which administration officials had proposed over the summer and is set to take effect in March, means some $49 billion in medical bills will be struck from the credit reports of about 15 million Americans.
The agency expects the rule will lead to the approval of some 22,000 additional mortgages every year, and that Americans with medical debt on their credit reports could see their credit scores rise by an average of 20 points.
The three major U.S. credit bureaus already announced in 2023 that previously paid medical debts, or any medical debts under $500, would no longer appear on credit reports.
The move comes as Biden administration officials race to safeguard aspects of their work weeks before President-elect Donald Trump retakes office.
Persons:
“, ”, Rohit Chopra, Donald Trump retakes, Elon Musk
Organizations:
Biden, Consumer Financial, Trump
Locations:
U.S