On January 7, 2025, the Consumer Finance Protection Bureau (CFPB) finalized a rule that requires the removal of $49 billion in medical bills from the credit reports of approximately 15 million Americans. The CFPB has estimated that changes required by this new rule will lead to the approval of approximately 22,000 additional mortgage applications annually and that Americans with medical debt on their credit report could see their credit scores rise by an average of 20 points.
The final rule will prohibit:
- The inclusion of medical bills on credit reports used by lenders; and
- Lenders from using medical information to make lending decisions.
The new rule will increase privacy protections and prevent debt collectors from using the credit reporting system to coerce people to pay medical bills they may not owe or that may not be accurate.
This final rule is effective 60 days after it is published in the Federal Register, approximately March 15, 2025. Consumers can file complaints regarding their credit reports on the CFPB’s website, www.cfpb/gov/complaint.
Source: CFPB Final Rule
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We may be able to help you improve your financial position and build your wealth through proactive mortgage planning and the effective management of home equity. Contact Wayne Tucker at 303-468-1985 or at wtucker@spectramortgage.com.
