CFPB Publishes Rule to Remove Medical Bills from Credit Reports

On January 14, 2025, the CFPB published a final rule to the Federal Register amending Regulation V, which implements FCRA, to prohibit creditors from considering medical information, including information about medical debts, in credit eligibility determinations.  This Prohibition on Creditors and Consumer Reporting Agencies Concerning Medical Information Rule will become effective March 17, 2024, unless Congress acts to overturn the rule before then.

When it takes effect, the new rule will both prohibit lenders from considering medical information in making lending decisions and ban the inclusion of medical bills on credit reports.  In justifying the new rule, the CFPB stated that the increase in privacy protections is warranted and is unlikely to harm lenders because its research has shown that medical bills on a credit report are a poor predictor of whether the borrower will repay a loan.