CFPB Rule Eliminating Medical Debt Creates Fairer Access to Credit
FOR IMMEDIATE RELEASE
January 7, 2025
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CFPB Rule Eliminating Medical Debt Creates Fairer Access to Credit
Washington, D.C. – Today, the National Fair Housing Alliance® (NFHA™) released the following statement from Nikitra Bailey, Executive Vice President at the National Fair Housing Alliance in response to the Consumer Financial Protection Bureau (CFPB) finalizing a rule to remove an estimated $49 billion in medical bills from the credit reports of about 15 million Americans:
“The National Fair Housing Alliance applauds the Consumer Financial Protection Bureau (CFPB)’s final rule banning medical debt from credit reports,” said Nikitra Bailey, executive vice president of the National Fair Housing Alliance. “Medical debt devastates the budgets of millions of families, especially those living in the South making it difficult for people living in the region to secure quality credit opportunities to purchase a home, start a business, or finance a car to get to work. It also disproportionately impacts Black and Latino consumers who are more likely to lack wealth to immediately address surprise medical expenses because they were long denied fair housing and lending opportunities. These medical debts can then result in collections reported on their credit reports, although the medical debits are not an accurate reflection of the consumer’s ability or willingness to repay debts. The CFPB’s final rule will help provide a more equitable path to access to credit and therefore further stimulate economic growth, especially in the South.”
About the National Fair Housing Alliance
The National Fair Housing Alliance (NFHA) is the country’s only national civil rights organization dedicated solely to eliminating all forms of housing and lending discrimination and ensuring equal opportunities for all people. As the trade association for over 170 fair housing and justice-centered organizations and individuals throughout the U.S. and its territories, NFHA works to dismantle longstanding barriers to equity and build diverse, inclusive, well-resourced communities.