Biden Administration to block medical debt from credit reports [Video]

NEW YORK — Medical debt will be stricken from credit reports in a change proposed by the White House that could help millions of Americans land a job, rent a home or obtain a car loan.

Vice President Kamala Harris and Rohit Chopra, director of the Consumer Financial Protection Bureau, formally announced the proposal to take unpaid medical bills off the table in determining one’s credit worthiness in a news conference on Tuesday.

The idea is to no longer “unjustly punish people for getting sick,” Chopra said. He noted the potential financial damage caused by one trip to a hospital emergency room, a debt “taken on unexpectedly and in a time of crisis.”

Further, CFPB researchers have foundthat medical debt, unlike other kinds of debt, does not accurately predict a consumer’s creditworthiness, rendering it virtually useless …