President Joe Biden’s administration will formally propose a rule to bar medical debt from individual credit reports Tuesday, a move that would prevent major health care bills from negatively impacting borrowing.
Vice President Kamala Harris and Consumer Financial Protection Bureau Director Rohit Chopra will announce the measure, a person familiar with the plan said, speaking on condition of anonymity to discuss the move before it is made public.
ABC News first reported the proposal.
The move is the latest effort from the administration to help lower costs for consumers ahead of November’s election rematch between Biden and Republican Donald Trump, in which inflation will be a key issue.
The proposal has been percolating for months. The CFPB said last year it was working on the change. At the time, the agency was also looking to stop lenders from considering such debts in an application and curb certain repayment practices.
The exact parameters of the proposed rule and when it would take effect are unclear.
Chopra told ABC it could take effect in 2025, potentially making its enactment dependent on the election.
.Here are the top political news stories for today.
So you don’t set up a payment plan and end up in collections which can not be used against you?
Essentially now you don’t need to pay back your medical debt.
This will drive medical up for all of us.
This is the opposite of a win.
@VetoSeahorseSocialist2yrs2Y
No it wont’ the medical facilities just write it off as usual. They have been writing off bad debt for decades. That won’t change.
Finally something I agree with. Medical debt is not your fault.
@CautiousTreatyPatriot2yrs2Y
This means we will now get lower quality drs and wait longer then the current 2 mths to see our PCPs this is the worst thing to happen to healthcare since Obamacare
It's unconstitutional for government to involve itself in this.
@P4rtisanArtGreen2yrs2Y
Pay attention folks. Medical debt should not affect your credit report or interfere with your ability to borrow. Biden gets **** done. **** that
@PorpoiseLunaPatriot2yrs2Y
This is the perfect timing for left, what a coincidence! Now they can say there is no two-tiered justice system, avoid Hunter being charged for his more serious crimes leading to his father, and no jail time!
@PanickyRhinoDemocrat2yrs2Y
Wow. I’m floored. They announced Biden was cancelling a small portion of student debt to little fanfare a couple weeks ago and I just checked my credit report and I definitely did not make a $5,000 payment to my student loan recently. Some of my debt was actually cancelled!
Why did Biden wait for his last few months in office to do anything? Seems odd and almost like he is just pandering for votes all of a sudden.
@ISIDEWITH2yrs2Y
Loading the political themes of users that engaged with this discussion
Loading data...
Join in on more popular conversations.
