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.” (more…)