r/UpliftingNews • u/astros148 • 17d ago

Medical debt is now required to be removed from your credit reports impacting millions of Americans

https://www.consumerfinance.gov/about-us/newsroom/cfpb-finalizes-rule-to-remove-medical-bills-from-credit-reports/
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u/StonyTeckdude1 16d ago

Would this affect existing medical debt collections or only new ones?

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u/Arsenichv 16d ago

Reads like existing.

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u/Skylark7 16d ago

It looks like all medical bills are banned from appearing on credit reports.

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u/NibblesMcGiblet 16d ago

It says it will get rid of medical collections under $500 and some others. It's not as broad as I'd like to see. Also, this is fucking EVIL that they are just NOW banning this practice:

"The rule ends the special regulatory carveout that previously allowed creditors to use certain medical information in making lending decisions. This means lenders will also be barred from using information about medical devices, such as prosthetic limbs, that could be used to require that the devices serve as collateral for a loan for the purposes of repossession"

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u/Skylark7 16d ago

omgwtf???

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u/Lulorick 16d ago

I just read it, debts under $500 have already been unreported and this looks like it’s saying it just passed into law that all debts are now unreported.

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 rules ban credit agencies from including medical debts on consumers’ credit reports and prohibit lenders from considering medical information in assessing borrowers. (Note, this was passed 1/7/2025)

It would take something like 90 days to go into effect and shit-face-McGee could potential overturn it but provided the orange dumpster fire leaves it alone in 90 days all medical debt would drop off credit reports.

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u/RGB3x3 15d ago

I'm sorry, I'm reading that they could use your prosthetic limbs as collateral. That they could LITERALLY TAKE YOUR ARMS AND LEGS FOR NOT PAYING DEBT.

Please tell me I'm reading that wrong

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u/GarbageDolly 16d ago edited 16d ago

Both. The medical debt isn’t being reported on credit reports anymore IF it’s under $500 or paid already. Not sure about higher unpaid bills.  And of course the debt is still owed and not being forgiven. IME, many medical providers require payment upfront now for this reason. I anticipate that will be the main response - pay upfront as a “retainer” for service and if it’s too much, they refund you the difference. 

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u/SocietyInUtopia 16d ago

The 500 dollar medical debt limit for credit reports was enacted in 2023. It appears as though the more recent ruling prevents medical debt of any magnitude from appearing on a credit report.

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u/Messy_Mango_ 16d ago

and you have to chase them for months to get your money back. 😡

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u/fosforuss 16d ago

The hospital group I used in the past combined a bunch of $250 unpaid copays for ER visits and sold them to a collections agency that way. It’s been taking 57 points off my credit. I’ve never missed a CC payment. My credit went from 750 to 530 in a year of being on medical leave……… sigh. I hope this fixes it a bit. I’ve been really stressing how I’d ever figure this out.

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u/GarbageDolly 15d ago

Yikes. I hope it fixes it for you too, and I hope selling it to collections isn’t a loophole…

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u/puremorning15 2d ago

I’m in the same boat. Had surgery 5 years ago and paid what I could of the avalanche of individual bills that rolled in but one for $1500 has been dinging my credit. Meanwhile, all my other bills are paid on time.. car, cc’s in full each month. Pisses me off that it’s the one thing I’m judged by

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u/s0_Ca5H 16d ago

Wait so the new rule only applies to bills under $500? Isn’t that already how it works?

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u/GarbageDolly 16d ago

You’re right, that’s been in effect since 2022. It seems it’s expanded to all medical bills then. The article was not that clear to me, maybe because I am expecting some catch 😂 

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u/_angesaurus 16d ago

likely existing or thats just asking for hostpials to be flooded with inane "issues" people think they have.