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January 13, 2025

How removing unpaid medical bills from credit reports could help consumers

  • CFPB says outstanding health care claims are a poor predictor of someone's ability to repay a loan.
    • By CORA LEWIS
    Associated Press

    NEW YORK — Lenders will no longer be able to consider unpaid medical bills as a credit history factor when they evaluate potential borrowers in the U.S. for mortgages, car loans or business loans, according to a rule the Consumer Financial Protection Bureau finalized last week.

    Removing medical debts from consumer credit reports is expected to increase the credit scores of millions of families by an average of 20 points, the bureau said. The CFPB says its research showed that outstanding health care claims are a poor predictor of someone's ability to repay a loan yet often are used to deny mortgage applications.


     
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