Credit Score Change Could Help Millions of Buyers

The nation’s consumer bureau took a first step to erase medical debt from credit reports and lending decisions because that type of debt “has little predictive value.”

The Consumer Financial Protection Bureau (CFPB) outlined proposals under consideration – moves that it says would help families recover from medical crises, stop debt collectors from coercing people into paying bills they may not owe, and ensure that creditors don’t rely on data that is often plagued with inaccuracies and mistakes.

“Research shows that medical bills have little predictive value in credit decisions, yet tens of millions of American households are dealing with medical debt on their credit reports,” says CFPB Director Rohit Chopra. “When someone gets sick, they should be able to focus on getting better rather than fighting debt collectors trying to extort them into paying bills they may not even owe.”

“Access to health care should be a right and not a privilege,” Vice President Kamala Harris told reporters as she helped CFPB make the announcement. “These measures will improve the credit scores of millions of Americans so that they will better be able to invest in their future.”

A 2022 CFPB report found that roughly 20% of Americans have medical debt, but, based on previous research, that type of debt isn’t a fair reflection on their future ability to repay a loan, unlike other more traditional credit obligations.

It’s not just the fact that medical debt isn’t important to analyzing a person’s credit, though. CFPB also claims that it also has a lot more mistakes and inaccuracies, compounded by problems such as disputes over insurance payments or complex billing practices.

The initial rule-making document released by CFPB is an outline of proposals and alternatives under consideration. If finalized without changes, it would:

– Remove medical bills from consumers’ credit reports: Credit-score companies would be prohibited from including medical debts and collection information on credit reports used in underwriting decisions.
– Stop creditors from relying on medical bills for underwriting decisions: It would narrow a 2005 exception and prohibit creditors from using medical collection information when evaluating borrowers’ credit applications.
– Stop coercive collection practices: Debt collectors would no longer be able to use the credit reporting system as leverage to pressure consumers into paying questionable debts.
© 2023 Florida Realtors®

And these recent articles:
August Sales still mostly over List Price
No signs of improvement in September Housing Inventory
Credit Score Change Could Help Millions of Buyers
2 of Every 25 U.S. Homes Worth at Least $1M
Marblehead Mid-year 2023 Market Stats
Swampscott Mid-year 2023 Market Stats
Salem Mid-year 2023 Market Stats

Economic and mortgage commentary
Two signs Inflation is Slowing
What drives Mortgage rates in one chart
How Marblehead’s 2023 Property Tax Rate is Calculated
Essex County 2023 Property Tax Rates: Town by Town guide
Why Mortgage Rates Will Fall

Market Reports
Essex County 2022 Housing Market Review
Essex County Town by Town Guide: 2022 Median Prices and Sales; 2023 Tax Rates

If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, please contact me on 617.834.8205 or

Andrew Oliver, M.B.E.,M.B.A.
Market Analyst | Team Harborside |

m 617.834.8205

“If you’re interested in Marblehead, you have to visit the blog of Mr. Andrew Oliver, author and curator of He’s assembled the most comprehensive analysis of Essex County we know of with market data and trends going back decades. It’s a great starting point for those looking in the towns of Marblehead, Salem, Beverly, Lynn and Swampscott.”

Andrew Oliver, M.B.E., M.B.A.
Real Estate Advisor

800 Laurel Oak Drive, Suite 400, Naples, FL 34108
m: 617.834.8205