WASHINGTON, DC – Today, U.S. Senator Tina Smith (D-MN) celebrated a new proposed rule from the Consumer Financial Protection Bureau (CFPB) shielding consumers’ credit scores from being impacted by medical debt. Today’s announcement came after Senator Smith, along with 9 of her colleagues, urged the agency to take action. According to the CFPB’s own report, there is over $88 billion in medical debt on consumer credit records.
“You can’t choose when you get sick – it happens whether we like it or not. You shouldn’t be punished with a lower credit score just because you needed medical care,” said Senator Smith.“This move by the Biden Administration puts the American people first, and I’m glad they listened to me and my colleagues who pushed for this new rule.”
Senator Smith, a member of the Senate Banking Committee, called attention to the growing crisis of medical debt in a letter to the CFPB in 2022. The move by the CFPB compliments actions by the Minnesota State Legislature, who passed the Debt Fairness Act as part of a large omnibus bill in May of this year to address the impact medical debt has on Minnesotans.
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