-Millions of Americans will see medical debts vanish from their credit reports under pending regulations unveiled Tuesday, U.S. Vice President Kamala Harris announced.
The proposed regulations, unveiled by the U.S. Consumer Financial Protection Bureau, come as Joe Biden’s administration works to tout its economic policies ahead of November’s elections.
The move would remove up to $49 billion in medical debts that currently appear on the credit reports of 15 million Americans, according to the CFPB.
Economic stimulus funds are also currently being used to eliminate $7 billion medical debts held by nearly 3 million Americans, according to the Vice President’s office.
“Medical debt makes it more difficult for millions of Americans to be approved for a car loan, a home loan or small business loans, all of which in turn makes it more difficult to just get by,” Harris told reporters.
“No one should be denied access to economic opportunity simply because they experienced a medical emergency.”
The proposal faces likely push-back from industry and Republican-led states, who have aggressively challenged Biden administration economic and environmental policies. A year ago, the U.S. Supreme Court blocked the administration’s plans to cancel $430 billion in student loan debts, upending a key Biden campaign promise.
Officials at the CFPB have long maintained that medical debt is a poor predictor of whether borrowers are likely to repay debts owed through credit cards, mortgages and other loans.
A senior CFPB officials told reporters on Tuesday the proposal would be subject to a period of public comment through mid-August and would likely be finalized early in 2025.
