CFPB rule to remove medical bills from credit reports goes into effect March 17, but enforcement uncertain: Legally Speaking

By Stephanie Haney (WYKC) / March 11, 2025

Legal analysis: There are supposed to be two big changes coming from the Consumer Financial Protection Bureau that are designed to help people with medical debt get money when they need it and avoid being scammed.

Legally Speaking, as of March 17, lenders can no longer consider your medical information when deciding whether to extend you credit, and medical bills can no longer show up on your credit report. But enforcement of this regulation is up in the air, because of the Trump administration's effective shutdown of the CFPB

If enforced, this new rule is expected to remove around $49 billion in medical bills from the credit reports of about 15 million Americans. Former CFPB leadership leader says this was necessary because their research shows that a medical bill on a person's credit report is not a good indicator of whether they'll repay a loan. Even so, these kinds of debts on credit reports have led to thousands of mortgage applications being denied when those people would have had no problem making those house payments.

CFPB's former director Rohit Chopra says this change will also help protect people from deceitful debt collection practices, saying, "The CFPB's final rule will close a special carveout that has allowed debt collectors to abuse the credit reporting system to coerce people into paying medical bills they may not even owe." This is based on reports of consumers "receiving inaccurate bills or being asked to pay bills that should have been covered by insurance or financial assistance programs."

It's estimated this rule change will lead to about 22,000 more mortgages being approved every year, and that people who have previously had medical debt on their credit report will see their credit score go up by an average of about 20 points. This regulation change has to do with how the Fair Credit Reporting Act is implemented, and the FCRA is enforced by both the CFPB and the Federal Trade Commission.

That being the case, I asked both agencies if it will be enforced by their officials. A spokesperson for the FTC said "we cannot comment." The email I sent to the press department for CFPB went unanswered.