CFPB finalizes rule to remove $50 billion in medical bills from credit reports

The Consumer Financial Protection Bureau (CFPB) has finalized a rule that will remove nearly $50 billion in medical bills from credit reports. This change aims to improve privacy but has raised concerns about its impact on credit scores and access to loans for low-income Americans. Critics, including Republican lawmakers and credit bureau Equifax, argue that the rule could lead to higher interest rates and reduced credit access. They claim it may harm consumers by making it harder for lenders to assess risk accurately. The CFPB defends the rule, stating that medical bills do not reliably predict loan repayment ability. However, the agency's authority to implement such a ban has been questioned, with some experts suggesting it may be an overreach.