CFPB agrees to temporarily halt medical debt rule

18 hours ago · The Consumer Financial Protection Bureau has agreed to temporarily halt a rule that would ban medical bills from credit reports, giving the banking industry an immediate win under the new leadership of Treasury Secretary Scott Bessent. On Thursday, the CFPB …

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CFPB Issues Rules To Remove Medical Debt From Consumer Credit …

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Jan 7, 2025 · The U.S. government on Tuesday issued new rules to remove roughly $49 billion in unpaid medical debts from Americans’ credit reports, even as debt collectors and incoming …

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FAQs about CFPB agrees to temporarily halt medical debt rule Coupon?

Will the CFPB eliminate unpaid medical debt?

While under the direction of Chopra last month, the CFPB outlined new rules to eliminate unpaid medical debt on American's credit reports. This move, approved to go into effect in March, would impact millions of Americans. The CFPB has also been instrumental in fighting "junk fees" that unfairly target American consumers. ...

What does the CFPB halt mean?

The CFPB was first created after the 2008 banking recession to protect customers from unfair and predatory corporate behavior. The halt means the Consumer Financial Protection Bureau (CFPB) will cease crafting regulations or enforcing any rules or investigations. The halt was "effective immediately," The Washington Post reported. ...

Will medical debt be removed from credit reports?

One move in particular warrants closer inspection. On January 7, the Consumer Financial Protection Bureau finalized a rule barring medical debt from appearing on credit reports. According to the agency, the rule will wipe $49 billion in medical bills from 15 million Americans' credit reports. That sounds significant. ...

What does the CFPB rule mean for healthcare reform?

The CFPB’s rule demonstrates a common problem with healthcare reform. Policymakers treat things differently when illness and medicine are involved—even if it means forgetting the basic laws of economics. ...

Is the CFPB rule redundant?

So, at minimum, the CFPB rule is redundant. But as the American Action Forum's John Walker notes, the NBER study found that "because medical debts are rarely repaid, wiping them from patients' records doesn't free up funds; rather, it further incentivizes patients not to pay." ...

Can medical debt be fungible?

Debt is debt, and money is fungible. In theory, a person could choose to pay off all their medical debt and still have lots of credit card debt. Or they could do the reverse, and what little medical debt they had left could actually represent an improved financial situation. ...