VP Harris announces rule to remove medical debt from credit reports

Vice President Kamala Harris has announced a new Consumer Financial Protection Bureau (CFPB) rule to eliminate medical debt from consumer credit reports. The White House explained in a release that the action would remove $49 billion in unpaid medical bills, benefiting 15 million Americans by raising credit scores and improving access to home loans, cars, and small businesses.Administration officials further noted that states and localities have already leveraged funds from the American Rescue Plan (ARP) to eliminate over $1 billion in medical debt for more than 700,000 Americans. These efforts are part of a broader push to reduce the financial strain caused by medical emergencies, with jurisdictions projected to eliminate roughly $15 billion in medical debt for up to six million individuals.“No one should be denied economic opportunity because they got sick or experienced a medical emergency. That is why we have worked to cancel more than $1 billion in medical debt with support from the American Rescue Plan,” Harris remarked during the announcement. “This final rule ensures that medical debt will no longer be included in credit scores, transforming the financial futures of millions.”Medical debt remains the largest source of debt in collections, surpassing credit card, utility, and auto...