Biden administration issues rule blocking medical debt from credit reports

The video discusses the impact of medical debt on Americans and the economy, highlighting a new rule by the Biden administration that will remove $49 billion in medical debt from credit reports. This rule aims to improve credit scores and increase mortgage approvals. It also addresses inaccuracies in medical bills and introduces privacy measures, prohibiting the use of medical information in loan decisions and banning medical devices as collateral.

What did the Consumer Financial Protection Bureau find about medical debt?

• It is a poor indicator of loan repayment ability.

• It is a strong indicator of loan repayment ability.

• It has no impact on credit scores.

• It is the main reason for loan defaults.

What is one of the benefits of the new rule regarding medical debt?

• It prevents debt collectors from using credit reports to pressure payments.

• It reduces the number of available mortgages.

• It increases the interest rates on loans.

• It allows debt collectors to use credit reports more effectively.

How many mortgages are expected to be added annually due to the new rule?

• 30,000

• 15,000

• 22,000

• 10,000

What is the expected average increase in credit scores due to the new rule?

• 10 points

• 15 points

• 25 points

• 20 points

What will credit lenders be prohibited from using when deciding on loans?

• Social media activity

• Educational background

• Medical information

• Employment history