WASHINGTON, D.C.— Brady Williams, issued the following statement on the Consumer Financial Protection Bureau’s (CFPB’s) finalization of its long-awaited rule addressing medical debt on credit reports:

“Today, the CFPB finalized an important rule to stop the harmful impact of medical debt on consumers’ credit scores. Prohibiting alleged medical debts from appearing on credit reports will benefit 15 million people who are unfairly disadvantaged by often inaccurate alleged medical debt on their credit reports, particularly Black, Latino, and low-income communities. The Bureau estimates the new rule will remove an estimated $49 billion in allegedly unpaid medical bills from the credit reports of about 15 million Americans.

“Research shows that not only do credit reports often report false or inaccurate information about medical debts, but medical debt is also not helpful for credit underwriting since it is often incurred involuntarily and unexpectedly. Moreover, the fear of damaging credit reports often deters consumers from seeking important medical care in the first place.

“Last August, Better Markets joined a joint comment letter, led by the National Consumer Law Center, from consumer, civil rights, health care, and advocacy organizations supporting the CFPB’s proposed rule. Although we continue to believe that the ban of medical debts from credit reports should also be extended to reports used for employment and tenant screening, the Bureau has taken an important first step that will benefit millions of Americans who are unfairly harmed by medical debt reporting.

“Better Markets applauds the CFPB for finalizing this important rule, and we look forward to seeing the many benefits it will bring to consumers.”

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