Vice President Kamala Harris has announced a significant move to alleviate financial burden on Americans affected by medical debt. The Consumer Financial Protection Bureau’s final ruling will remove $49 billion in unpaid medical bills from the credit reports of 15 million Americans.
Under this decision, $1 billion in medical debt for over 700,000 Americans will be completely eliminated. Harris emphasized that no one should face economic hardship due to illness or a medical emergency, stating, “No one should be denied economic opportunity because they got sick or experienced a medical emergency.”
The ruling is expected to positively impact the credit scores of those affected by an estimated average of 20 points and lead to the approval of approximately 22,000 additional mortgages every year. While the debts that are not relieved will still need to be paid, this move aims to reduce the burden of medical debt and make it easier for individuals to access essential loans.
The announcement fulfills Harris’ call to action for states to reduce the burden of medical debt, which often hinders access to credit for necessary living expenses.
Source: https://www.foxbusiness.com/politics/harris-announces-ruling-removing-billions-medical-debt-credit-reports