The Biden administration is planning to eliminate medical debt from credit reports of millions of Americans. What could this mean for you? WSB-TV Channel 2 [Video]

The Biden administration Tuesday announced a new proposed rule to erase medical debt from credit reports, potentially helping an estimated 100 million Americans who struggle to pay their medical bills. The new rule, which was proposed by the Consumer Financial Protection Bureau (CFPB), aims to bring relief to patients who have had trouble getting approved for loans, renting an apartment, getting a job and being able to afford everyday essentials due to medical debt. The CFPB is a government agency whose goal is to make financial markets fair for Americans.

“The CFPB is seeking to end the senseless practice of weaponizing the credit reporting system to coerce patients into paying medical bills that they do not owe,” CFPB Director Rohit Chopra said in a press release. “Medical bills on credit reports too often are inaccurate and have little to no predictive value when it comes to repaying other loans.”

Here’s what the new proposal might mean for you and your wallet.

The bureau’s anticipated proposal advances an …