Medical Debt Will Stay on Credit Reports After a Judge’s Ruling. How Can You Limit Its Impact on Your Credit?
For the millions of Americans struggling to pay off the costs of expensive medical procedures, the looming debt is accompanied by another threat: that the unpaid medical bills could drag down their credit scores, making it harder to get a credit card or buy a home or car. And now a rule that would have addressed that issue will no longer be going into effect.
In the final days of President Joe Biden’s term, the Consumer Financial Protection Bureau (CFPB) issued a rule that would have removed medical debt from credit reports. The goal was to “reduce the burden of medical debt and ensure that patients are not denied access to credit for home mortgages, car loans, or small business loans due to unpaid medical bills,” according to the White House press release at the time. But under the Trump Administration, the CFPB flipped its stance on the rule, which had not yet gone into effect. And on Friday, a federal judge, who was appointed by President Donald Trump, vacated the rule, stating tha..