Banks and other lenders will be prohibited from using medical debt information in credit reports, under a new rule finalized by the Consumer Financial Protection Bureau (CFPB), the agency said Tuesday.
Credit reports are tally sheets that list a person’s assets and debts, and often are accompanied by an overall score, which banks and other lenders use to determine if a loan applicant is eligible for a mortgage or loan. Credit reports are created by three credit bureaus, Equifax, Experian, and TransUnion, which are private companies that make money by charging fees for the reports.
