New regulations from the Consumer Financial Protection Bureau (CFPB) will soon eliminate medical debt from credit reports, benefiting millions of Americans burdened by healthcare costs. Approximately 100 million people in the U.S. are affected by medical debt, which often leads to severe financial strain, forcing individuals to take on extra jobs or even lose their homes. The new policy, effective in about 60 days, prohibits credit agencies from including medical debt in credit reports and restricts lenders from considering medical debt when evaluating borrowers. This change is expected to improve credit scores for around 15 million people, potentially making it easier for them to secure loans, mortgages, and housing. While the incoming Trump administration could attempt to reverse this decision, doing so would require a lengthy process and could face significant political pushback. The CFPB's efforts represent a significant step toward alleviating the financial burdens associated with medical debt in America.
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