June 14, 2024
Dear  John xxxxxx,

I'm excited to share some important news from President Biden and the Consumer Financial Protection Bureau (CFPB) that could positively impact millions of Americans that are affected by medical debt. The CFPB has proposed a new rule to remove medical bills from most credit reports, aiming to protect your privacy, improve credit scores, and make it easier to get loans. 

Key Proposed Changes:

• No Sharing Medical Debts: Credit reporting companies will not be able to share medical debts with lenders.
• Better Privacy: Lenders won’t be able to use medical information to decide if you get a loan.
• Stopping Pressuring Practices: Prevent debt collectors from using credit reports to make you pay inaccurate or false medical bills.
• Guardrails for Credit Reporting Companies: Prohibit including medical debt in reports sent to lenders who can't use it.
• Protecting Medical Devices: Lenders can't take medical devices, like wheelchairs, if you can’t repay a loan.

Why Does This Matter? 

Medical debts often hurt your credit score unfairly. This new rule will help improve your credit score and make it easier to get approved for loans. The CFPB expects this change will lead to about 22,000 more safe mortgage approvals each year. Additionally, according to the White House removing medical debts from credit reports could raise credit scores by about 20 points for many people.

Seeking medical care shouldn't come with the fear of being denied economic opportunities. House Democrats and the CFPB are putting doctors visits over debt for 2 out of every 5 Americans that are currently experiencing medical debt.  

If you have complaint about a financial product or service click here to submit it to the CFPB or call (855) 411-2372. Together, we can ensure fair treatment and better financial health for everyone.

Sincerely,

Sylvia R. Garcia
Member of Congress

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