Harris announces ruling removing billions in medical debt from credit reports
Vice President Kamala Harris declared on Tuesday that in the future, credit reports of Americans will not reflect medical bills resulting in sizeable debt.
From the credit reports of approximately 15 million United States residents.
The states and local governments have utilized ARP funds to wipe away over $1 billion worth of medical debt for over seven hundred thousand Americans.
By creating more routes to make amends and enforcing stronger laws to prevent deceptive debt collection methods.
for essential living expenses.
Download the Fox Business App now and get the latest business news.
This will mark a life-changing moment for millions of families, making it simpler for them to get approved for a car loan, a home loan, or a small business loan.
The upcoming CFPB ruling is anticipated to result in a 20-point increase in credit scores for those impacted and lead to an additional 22,000 mortgages being approved annually.
As of now, credit bureaus will stop revealing unpaid medical bills older than one year to credit reports.
Although small unpaid medical bills no longer appear on credit reports, having a large amount of outstanding medical debt can significantly affect a consumer's chances of being approved for a loan, in spite of research by the CFPB indicating that medical bills don't reliably forecast a person's ability to pay off a loan.
The law will prevent medical expenses from being reported on credit scores, but it will still leave the responsibility of paying those debts with the individual.
Paying your medical bills will still show unpaid debts on your report, since the ruling does not cover those debts.
Original article source: Harris Delivers a Portable Decision Cancelling Billions in Outstanding Medical Overspending from Personal Credit Reports
Post a Comment for "Harris announces ruling removing billions in medical debt from credit reports"