CFPB proposes to ban medical bills from credit reports

The Consumer Financial Protection Bureau proposed a rule that would remove medical bills from most credit reports.

Details: The proposal would stop credit reporting companies from sharing medical debts with lenders and prohibit lenders from making lending decisions based on medical information. The CFPB said this action would increase privacy protections, help increase credit scores and loan approvals, and prevent debt collectors from using the credit reporting system to coerce people to pay.

ICBA View: ICBA opposes efforts that limit the value of credit scores, such as limiting accurate and legitimate negative information on credit reports.

Advocacy: ICBA and other groups previously called on the CFPB to issue an advance notice of proposed rulemaking before releasing its pending proposed rule to solicit the widest range of input. ICBA separately issued a comment letter raising concerns about the compliance impact of expanding the entities covered as consumer reporting agencies.