David White, who after kidney surgery got hit with a lot of extra charges, sits for a portrait with some of his medical bill charges in the foreground, at his home in Temple Hills, Md., Monday, June 26, 2023.
The Consumer Financial Protection Bureau said the rule would ban medical debt from credit reports and prevent lenders from making decisions based on medical information. It would also prevent lenders from repossessing medical devices like wheelchairs if people cannot repay a loan. He says just one third-party collection, even from a medical collector, can result in a major hit to your credit score even if your credit is considered great.This proposal isn't the first time the federal government has tried to address medical debt for Americans.removed all paid medical debts from credit reports. They also then took steps to remove all medical collections under $500.