Medical debt will be removed from credit reports: What this means for Americans
Published On Jan 8, 2025, 11:37 AM
The Biden administration has finalized a new rule to remove medical debt from credit reports, aiming to help millions of Americans negatively impacted by unpaid medical bills. This change is expected to eliminate about $49 billion in medical debt from the credit reports of around 15 million individuals, which could lead to an average credit score increase of 20 points for those affected. This rule intends to improve access to credit for individuals applying for mortgages and loans, allowing approximately 22,000 more affordable mortgages to be approved annually. The regulation also prohibits lenders from using specific medical information in lending decisions, helping to prevent coercion from debt collectors regarding payments on possibly inaccurate medical bills.
Stock Forecasts
XLF
Positive
The removal of medical debt from credit reports is likely to boost consumer credit scores, enhancing individuals' ability to secure loans. This increase in consumer borrowing capability can positively impact financial institutions that offer loans and mortgages. Additionally, companies within healthcare financial solutions may also experience growth as more individuals seek necessary medical care without fear of credit score repercussions.
Related News
Wall Street notches another win as Fed's Barr clears the way for gentler banking regulator
Jan 7, 2025, 8:36 AM
With Barr's resignation, a more precise image of incoming bank deregulation is forming.
How could the incoming Trump admin impact the mergers and acquisitions market?
Jan 7, 2025, 6:00 AM
President-elect Trump's return to the White House could bring an uptick in mergers and acquisitions, as markets anticipate tax and regulatory reforms that will boost dealmaking.
Michael Barr to Leave His Role as Fed Vice Chair for Supervision
Jan 6, 2025, 11:35 AM
Michael Barr oversaw an attempt to rewrite financial regulations that came under attack from a wide range of groups, including banks, lawmakers and even some of his colleagues.