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Biden administration bans unpaid medical bills from appearing on credit reports

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Biden administration bans unpaid medical bills from appearing on credit reports
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Biden administration bans unpaid medical bills from appearing on credit reports

2025-01-07 21:33 Last Updated At:21:41

Unpaid medical bills will no longer appear on credit reports, where they can block people from mortgages, car loans or small business loans, according to a final rule announced Tuesday by the Biden administration.

The Consumer Financial Protection Bureau rule will remove $49 billion in medical debt from the credit reports of more than 15 million Americans, according to the bureau, which means lenders will no longer be able to take that into consideration when deciding to issue a loan.

The change is estimated to raise the credit scores by an average of 20 points and could lead to 22,000 additional mortgages being approved every year, according to the bureau. Vice President Kamala Harris said in a statement announcing the rule that it would be “lifechanging” for millions of families.

“No one should be denied economic opportunity because they got sick or experienced a medical emergency,” she said.

Harris also announced that states and local governments have used a sweeping 2021 pandemic-era aid package to eliminate more than $1 billion in medical debt for more than 700,000 Americans.

The administration announced plans for the rule in fall 2023.

The CFPB said that medical debt is a poor predictor of an individual's ability to repay a loan. Experian, Equifax and TransUnion, the three national credit reporting agencies, said last year that they were removing medical collections debt under $500 from U.S. consumer credit reports.

The new rule from the Biden administration is set to take on the outstanding bills appearing on credit reports.

Vice President Kamala Harris addresses the media after overseeing the counting of the electoral ballots to certifying the 2024 presidential election in the House Chamber at the U.S. Capitol on Monday, Jan. 6, 2025, in Washington. (AP Photo/John McDonnell)

Vice President Kamala Harris addresses the media after overseeing the counting of the electoral ballots to certifying the 2024 presidential election in the House Chamber at the U.S. Capitol on Monday, Jan. 6, 2025, in Washington. (AP Photo/John McDonnell)

Vice President Kamala Harris talks to reporters after presiding over a joint session of Congress to confirm the Electoral College votes at the Capitol, Monday, Jan. 6, 2025, in Washington. (AP Photo/Jose Luis Magana)

Vice President Kamala Harris talks to reporters after presiding over a joint session of Congress to confirm the Electoral College votes at the Capitol, Monday, Jan. 6, 2025, in Washington. (AP Photo/Jose Luis Magana)

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PHOTO COLLECTION: Trump Tariffs

2025-04-03 14:54 Last Updated At:15:01

This is a photo collection curated by AP photo editors.

Employee Jonathon Cortez, left, helps a customer find metal screws at employee-owned Devon Hardware, Wednesday, April 2, 2025, in Chicago. (AP Photo/Erin Hooley)

Employee Jonathon Cortez, left, helps a customer find metal screws at employee-owned Devon Hardware, Wednesday, April 2, 2025, in Chicago. (AP Photo/Erin Hooley)

Employee Jonathon Cortez, left, helps a customer find metal screws at employee-owned Devon Hardware, Wednesday, April 2, 2025, in Chicago. (AP Photo/Erin Hooley)

Employee Jonathon Cortez, left, helps a customer find metal screws at employee-owned Devon Hardware, Wednesday, April 2, 2025, in Chicago. (AP Photo/Erin Hooley)

Stainless sreel fasteners are for sale at employee-owned Devon Hardware, Wednesday, April 2, 2025, in Chicago. (AP Photo/Erin Hooley)

Stainless sreel fasteners are for sale at employee-owned Devon Hardware, Wednesday, April 2, 2025, in Chicago. (AP Photo/Erin Hooley)

Loose nails are for sale at employee-owned Devon Hardware, Wednesday, April 2, 2025, in Chicago. (AP Photo/Erin Hooley)

Loose nails are for sale at employee-owned Devon Hardware, Wednesday, April 2, 2025, in Chicago. (AP Photo/Erin Hooley)

Steel lumber nails are for sale at employee-owned Devon Hardware, Wednesday, April 2, 2025, in Chicago. (AP Photo/Erin Hooley)

Steel lumber nails are for sale at employee-owned Devon Hardware, Wednesday, April 2, 2025, in Chicago. (AP Photo/Erin Hooley)

Steel cable is for sale at employee-owned Devon Hardware, Wednesday, April 2, 2025, in Chicago. (AP Photo/Erin Hooley)

Steel cable is for sale at employee-owned Devon Hardware, Wednesday, April 2, 2025, in Chicago. (AP Photo/Erin Hooley)

Employee Jonathon Cortez works in an aisle of metal hardware at employee-owned Devon Hardware, Wednesday, April 2, 2025, in Chicago. (AP Photo/Erin Hooley)

Employee Jonathon Cortez works in an aisle of metal hardware at employee-owned Devon Hardware, Wednesday, April 2, 2025, in Chicago. (AP Photo/Erin Hooley)

Metal fasteners are for sale at employee-owned Devon Hardware, Wednesday, April 2, 2025, in Chicago. (AP Photo/Erin Hooley)

Metal fasteners are for sale at employee-owned Devon Hardware, Wednesday, April 2, 2025, in Chicago. (AP Photo/Erin Hooley)

Elbows Up for Canada protesters gather near The Peace Bridge border crossing in Buffalo, N.Y., Wednesday, April 2, 2025. (AP Photo/Adrian Kraus)

Elbows Up for Canada protesters gather near The Peace Bridge border crossing in Buffalo, N.Y., Wednesday, April 2, 2025. (AP Photo/Adrian Kraus)

Elbows Up for Canada protesters gather near The Peace Bridge border crossing in Buffalo, N.Y., Wednesday, April 2, 2025. (AP Photo/Adrian Kraus)

Elbows Up for Canada protesters gather near The Peace Bridge border crossing in Buffalo, N.Y., Wednesday, April 2, 2025. (AP Photo/Adrian Kraus)

Kate Powers, left, addresses protesters gathered near The Peace Bridge border crossing in Buffalo, N.Y., Wednesday, April 2, 2025. (AP Photo/Adrian Kraus)

Kate Powers, left, addresses protesters gathered near The Peace Bridge border crossing in Buffalo, N.Y., Wednesday, April 2, 2025. (AP Photo/Adrian Kraus)

Beth McKee holds a sign as she stands over the highway near The Peace Bridge border crossing in Buffalo, N.Y., Wednesday, Apr. 2, 2025. (AP Photo/Adrian Kraus)

Beth McKee holds a sign as she stands over the highway near The Peace Bridge border crossing in Buffalo, N.Y., Wednesday, Apr. 2, 2025. (AP Photo/Adrian Kraus)

Deborah Tatko has a photo taken with her signs as she stands with protesters gathered near The Peace Bridge border crossing in Buffalo, N.Y., Wednesday, April 2, 2025. (AP Photo/Adrian Kraus)

Deborah Tatko has a photo taken with her signs as she stands with protesters gathered near The Peace Bridge border crossing in Buffalo, N.Y., Wednesday, April 2, 2025. (AP Photo/Adrian Kraus)

Cranes and shipping containers are seen at a port in Pyeongtaek, South Korea, Wednesday, April 2, 2025. (AP Photo/Ahn Young-joon)

Cranes and shipping containers are seen at a port in Pyeongtaek, South Korea, Wednesday, April 2, 2025. (AP Photo/Ahn Young-joon)

Cranes and shipping containers are seen at a port in Pyeongtaek, South Korea, Wednesday, April 2, 2025. (AP Photo/Ahn Young-joon)

Cranes and shipping containers are seen at a port in Pyeongtaek, South Korea, Wednesday, April 2, 2025. (AP Photo/Ahn Young-joon)

Vehicles for export are parked at a port in Pyeongtaek, South Korea, Wednesday, April 2, 2025. (AP Photo/Ahn Young-joon)

Vehicles for export are parked at a port in Pyeongtaek, South Korea, Wednesday, April 2, 2025. (AP Photo/Ahn Young-joon)

Vehicles for export are parked at a port in Pyeongtaek, South Korea, Wednesday, April 2, 2025. (AP Photo/Ahn Young-joon)

Vehicles for export are parked at a port in Pyeongtaek, South Korea, Wednesday, April 2, 2025. (AP Photo/Ahn Young-joon)

Cranes and shipping containers are seen at a port in Pyeongtaek, South Korea, Wednesday, April 2, 2025. (AP Photo/Ahn Young-joon)

Cranes and shipping containers are seen at a port in Pyeongtaek, South Korea, Wednesday, April 2, 2025. (AP Photo/Ahn Young-joon)

Vehicles for export stand parked at a port in Pyeongtaek, South Korea, Wednesday, April 2, 2025. (AP Photo/Ahn Young-joon)

Vehicles for export stand parked at a port in Pyeongtaek, South Korea, Wednesday, April 2, 2025. (AP Photo/Ahn Young-joon)

Vehicles for export park at a port in Pyeongtaek, South Korea, Wednesday, April 2, 2025. (AP Photo/Ahn Young-joon)

Vehicles for export park at a port in Pyeongtaek, South Korea, Wednesday, April 2, 2025. (AP Photo/Ahn Young-joon)

A truck container drives past the Jakarta International container terminal at Tanjung Priok seaport in Jakarta, Indonesia, Thursday, April 3, 2025. (AP Photo/Achmad Ibrahim)

A truck container drives past the Jakarta International container terminal at Tanjung Priok seaport in Jakarta, Indonesia, Thursday, April 3, 2025. (AP Photo/Achmad Ibrahim)

A truck container drives past the Jakarta International container terminal at Tanjung Priok seaport in Jakarta, Indonesia, Thursday, April 3, 2025. (AP Photo/Achmad Ibrahim)

A truck container drives past the Jakarta International container terminal at Tanjung Priok seaport in Jakarta, Indonesia, Thursday, April 3, 2025. (AP Photo/Achmad Ibrahim)

A Cambodian garment worker buys cloth during a lunch break on a sidewalk at Ang Tako village outside Phnom Penh Cambodia, Thursday, April 3, 2025. (AP Photo/Heng Sinith)

A Cambodian garment worker buys cloth during a lunch break on a sidewalk at Ang Tako village outside Phnom Penh Cambodia, Thursday, April 3, 2025. (AP Photo/Heng Sinith)

Cambodian garment workers look at clothes displayed for sale during a lunch break on a sidewalk at Ang Tako village, outside Phnom Penh Cambodia, Thursday, April 3, 2025. (AP Photo/Heng Sinith)

Cambodian garment workers look at clothes displayed for sale during a lunch break on a sidewalk at Ang Tako village, outside Phnom Penh Cambodia, Thursday, April 3, 2025. (AP Photo/Heng Sinith)

Cambodian garment workers join for lunch on a sidewalk at Ang Tako village outside Phnom Penh Cambodia, Thursday, April 3, 2025. (AP Photo/Heng Sinith)

Cambodian garment workers join for lunch on a sidewalk at Ang Tako village outside Phnom Penh Cambodia, Thursday, April 3, 2025. (AP Photo/Heng Sinith)

News of tariff hikes announced by U.S. President Donald Trump is seen on a display screen on the facade of the Bombay Stock Exchange (BSE) building in Mumbai, India, Thursday, April 3, 2025. (AP Photo/Rafiq Maqbool)

News of tariff hikes announced by U.S. President Donald Trump is seen on a display screen on the facade of the Bombay Stock Exchange (BSE) building in Mumbai, India, Thursday, April 3, 2025. (AP Photo/Rafiq Maqbool)

News of tariff hikes announced by U.S. President Donald Trump is seen on a display screen on the facade of the Bombay Stock Exchange (BSE) building in Mumbai, India, Thursday, April 3, 2025. (AP Photo/Rafiq Maqbool)

News of tariff hikes announced by U.S. President Donald Trump is seen on a display screen on the facade of the Bombay Stock Exchange (BSE) building in Mumbai, India, Thursday, April 3, 2025. (AP Photo/Rafiq Maqbool)

Us President Donald Trump appears on a television screen at the stock market in Frankfurt, Germany, Wednesday, April 2, 2025. (AP Photo/Michael Probst)

Us President Donald Trump appears on a television screen at the stock market in Frankfurt, Germany, Wednesday, April 2, 2025. (AP Photo/Michael Probst)

Containers are stacked at the Port of Los Angeles Wednesday, April 2, 2025, in Los Angeles. (AP Photo/Damian Dovarganes)

Containers are stacked at the Port of Los Angeles Wednesday, April 2, 2025, in Los Angeles. (AP Photo/Damian Dovarganes)

Containers are stacked at the Port of Los Angeles Wednesday, April 2, 2025, in Los Angeles. (AP Photo/Damian Dovarganes)

Containers are stacked at the Port of Los Angeles Wednesday, April 2, 2025, in Los Angeles. (AP Photo/Damian Dovarganes)

Containers are stacked at the Port of Los Angeles Wednesday, April 2, 2025, in Los Angeles. (AP Photo/Damian Dovarganes)

Containers are stacked at the Port of Los Angeles Wednesday, April 2, 2025, in Los Angeles. (AP Photo/Damian Dovarganes)

Containers are stacked at the Port of Los Angeles Wednesday, April 2, 2025, in Los Angeles. (AP Photo/Damian Dovarganes)

Containers are stacked at the Port of Los Angeles Wednesday, April 2, 2025, in Los Angeles. (AP Photo/Damian Dovarganes)

Containers are stacked at the Port of Los Angeles Wednesday, April 2, 2025, in Los Angeles. (AP Photo/Damian Dovarganes)

Containers are stacked at the Port of Los Angeles Wednesday, April 2, 2025, in Los Angeles. (AP Photo/Damian Dovarganes)

Senate Minority Leader Chuck Schumer, D-N.Y., center, is joined from left by Sen. Tim Kaine, D-Va., Sen. Peter Welch, D-Vt., and Sen. Angela Alsobrooks, D-Md., as they speak to reporters about President Donald Trump's tariffs on foreign countries, at the Capitol, in Washington, Wednesday, April 2, 2025. (AP Photo/J. Scott Applewhite)

Senate Minority Leader Chuck Schumer, D-N.Y., center, is joined from left by Sen. Tim Kaine, D-Va., Sen. Peter Welch, D-Vt., and Sen. Angela Alsobrooks, D-Md., as they speak to reporters about President Donald Trump's tariffs on foreign countries, at the Capitol, in Washington, Wednesday, April 2, 2025. (AP Photo/J. Scott Applewhite)

From left, Sen. Tim Kaine, D-Va., Sen. Angela Alsobrooks, D-Md., Sen. Peter Welch, D-Vt., and Senate Minority Leader Chuck Schumer, D-N.Y., speak to reporters about President Donald Trump's tariffs on foreign countries, at the Capitol, in Washington, Wednesday, April 2, 2025. (AP Photo/J. Scott Applewhite)

From left, Sen. Tim Kaine, D-Va., Sen. Angela Alsobrooks, D-Md., Sen. Peter Welch, D-Vt., and Senate Minority Leader Chuck Schumer, D-N.Y., speak to reporters about President Donald Trump's tariffs on foreign countries, at the Capitol, in Washington, Wednesday, April 2, 2025. (AP Photo/J. Scott Applewhite)

President Donald Trump speaks during an event to announce new tariffs in the Rose Garden of the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Evan Vucci)

President Donald Trump speaks during an event to announce new tariffs in the Rose Garden of the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Evan Vucci)

President Donald Trump speaks during an event to announce new tariffs in the Rose Garden of the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Evan Vucci)

President Donald Trump speaks during an event to announce new tariffs in the Rose Garden of the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Evan Vucci)

Members of congress and invited guests listen as President Donald Trump speaks during an event to announce new tariffs in the Rose Garden of the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Evan Vucci)

Members of congress and invited guests listen as President Donald Trump speaks during an event to announce new tariffs in the Rose Garden of the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Evan Vucci)

Retired autoworker Brian Pannebecker speaks as President Donald Trump listens during an event to announce new tariffs in the Rose Garden at the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Mark Schiefelbein)

Retired autoworker Brian Pannebecker speaks as President Donald Trump listens during an event to announce new tariffs in the Rose Garden at the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Mark Schiefelbein)

President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Mark Schiefelbein)

President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Mark Schiefelbein)

President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Mark Schiefelbein)

President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Mark Schiefelbein)

President Donald Trump holds a signed executive order during an event to announce new tariffs in the Rose Garden of the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Evan Vucci)

President Donald Trump holds a signed executive order during an event to announce new tariffs in the Rose Garden of the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Evan Vucci)

Commerce Secretary Howard Lutnick holds a chart as President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Mark Schiefelbein)

Commerce Secretary Howard Lutnick holds a chart as President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Mark Schiefelbein)

President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, Wednesday, April 2, 2025, in Washington, as Commerce Secretary Howard Lutnick listens. (AP Photo/Mark Schiefelbein)

President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, Wednesday, April 2, 2025, in Washington, as Commerce Secretary Howard Lutnick listens. (AP Photo/Mark Schiefelbein)

President Donald Trump arrives to speak during an event to announce new tariffs in the Rose Garden of the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Evan Vucci)

President Donald Trump arrives to speak during an event to announce new tariffs in the Rose Garden of the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Evan Vucci)

President Donald Trump arrives to speak during an event to announce new tariffs in the Rose Garden of the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Evan Vucci)

President Donald Trump arrives to speak during an event to announce new tariffs in the Rose Garden of the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Evan Vucci)

President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Mark Schiefelbein)

President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Mark Schiefelbein)

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