Unpaid medical bills became a bigger concern during the pandemic, and now, a federal consumer agency is considering whether those debts should be banned from consumer credit reports, the New York Times reported. Rohit Chopra, director of the Consumer Financial Protection Bureau, discussed the agency’s plans this week after pointing out new research by the bureau on medical debt and its effect on Americans. The report found that 20 percent of American households say they have medical debt. It also estimated that more than half (58 percent) of the debt that appears on credit reports as being in collection stems from medical bills, a proportion that Mr. Chopra deemed “extraordinary.” “Having a medical debt collection mark on a credit record can make it harder to get credit, rent or buy a home or find a job,” Mr. Chopra said. “Families are pushed into bankruptcy by medical debts that they cannot pay.” Black and Hispanic people, as well as low-income and younger adults, have higher rates of medical debt than the overall population, the report noted. As a result, the agency will be “scrutinizing” the three major credit reporting bureaus — Equifax, Experian and TransUnion — and their handling of medical debt to make sure it is accurately reported in consumer files, Mr. Chopra said.
