Consumer Finance Protection Bureau (CFPB) Starts Process to Eliminate Medical Bills from Credit Reports
Tags : Credit Reporting
The proposal by the CFPB to remove medical bills from credit reports comes on the heels of a July 2022 decision by the three major credit reporting firms to remove most medical debt from consumers' credit reports.
The CFPB has now gone a step further, announcing the launch of a rulemaking process aimed to completely remove medical debt entirely from credit reports. The CFPB has found that medical billing data on credit reports is less valuable in predicting future repayment and that medical billing inaccuracies and mistakes are very common.
The CFPB's proposal would remove medical bills from consumer credit reports entirely, and prohibit creditors from using medical collections information to evaluate a credit application. If finalized, this ruling will impact the 20% of Americans who reported medical debt. If this rule is enacted, employers who run credit reports for employment purposes would not expect to see any medical debt collection tradelines on an employee's or applicant's consumer report.
Posted: October 3, 2023
All Rights Reserved © 2023 Truescreen, Inc.
This document and/or presentation is provided as a service to our customers. Its contents are designed solely for informational purposes, and should not be inferred or understood as legal advice or binding case law, nor shared with any third parties. Persons in need of legal assistance should seek the advice of competent legal counsel. Although care has been taken in preparation of these materials, we cannot guarantee the accuracy, currency or completeness of the information contained within it. Anyone using this information does so at his or her own risk.
The service you provide at Truescreen has been the best I have ever seen in comparison to other vendors I have worked with in the past! You guys rock!
I am very impressed with your company’s customer service, and the Truescreen portal seems to be an intuitive, user-friendly design.
Our team loves working with Truescreen and the expedient, thorough service and results we get from you.
I appreciate all your hard work ensuring that individuals are cleared through our processes. Truescreen makes my job so much easier and less stressful.