Biden Administration Bans Medical Debt from Credit Reports

The Biden administration announced a ban on medical debt in credit reports, impacting 15 million Americans by removing $49 billion in medical bills. The rule, backed by Kamala Harris, aims to provide economic relief and improve access to mortgages, facing criticism from banking sectors.

In a decisive move, President Joe Biden's administration announced a groundbreaking ban on including medical debt in American consumers' credit reports. This policy change will remove $49 billion of medical bills, impacting 15 million Americans, and aligns with a campaign promise delivered just weeks before Biden's exit from office.

Despite facing opposition from banking and consumer data sectors, the U.S. Consumer Financial Protection Bureau confirmed this new regulation. The decision comes amid pressure from Congressional Republicans for Biden's financial regulators to pause new rules as President-elect Donald Trump prepares for inauguration.

Vice President Kamala Harris, a key advocate for this policy, expressed its transformative potential, stating, "No one should be denied economic opportunity because they got sick or experienced a medical emergency." The rule has been endorsed by the American Medical Association, contributing to enhanced credit scores and greater access to low-cost mortgages.

(With inputs from agencies.)