NC Justice Center celebrates new CFPB rule to remove medical debts from credit reports 

RALEIGH (January 10, 2025) – The NC Justice Center is celebrating a new rule issued by the Consumer Financial Protection Bureau (CFPB) that will stop credit reporting companies from sharing medical debts with lenders and prohibit lenders from making lending decisions based on existing medical debt. The CFPB rule will impact an estimated 800,000 North Carolinians who have medical debt on their credit reports.

“Individuals and households should not be penalized with higher costs for credit—or be denied credit entirely—simply because they experienced a health issue that resulted in medical debt they cannot afford,” said Jason Pikler, Senior Attorney at the NC Justice Center. “The CFPB’s new medical debt rule will also stop debt collectors from coercing payments, including for inaccurate or false medical bills, by threatening to harm consumers’ credit.”

While the CFPB’s new rule is an important step in North Carolina—where nearly 1 in 10 adults have medical debt in collections—the rule does not apply to medical debt on credit cards, including specialized credit cards, which advocates urged the CFPB to include. It also does not apply to credit reports used for non-lending purposes, such as employment and tenant screening. The NC Justice Center, therefore, will continue to push for even greater protections for North Carolinians relating to medical debt.