California Black Media
In Letter, Atty Gen. Bonta Steps Up Fight Against Medical Debt Reporting
Attorney General Rob Bonta backed a newly proposed rule that prohibits the reporting of medical debt on credit reports, in a letter to the Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra. The proposed rule aims to relieve millions of people bridled with unexpected or inaccurate medical bills. Bonta, along with several state lawmakers, is sponsoring Senate Bill (SB) 1061, a law that would prevent medical debt from being included on credit reports, protecting consumers from those outstanding charges damaging their creditworthiness.
By Bo Tefu, California Black Media
Attorney General Rob Bonta backed a newly proposed rule that prohibits the reporting of medical debt on credit reports, in a letter to the Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra.
The proposed rule aims to relieve millions of people bridled with unexpected or inaccurate medical bills.
Bonta, along with several state lawmakers, is sponsoring Senate Bill (SB) 1061, a law that would prevent medical debt from being included on credit reports, protecting consumers from those outstanding charges damaging their creditworthiness.
The bill is authored by Sen. Monique Limón (D- Santa Barbara) and Sen. Josh Becker (D-Menlo Park).
Bonta acknowledged the consumer bureau for spearheading the initiative and providing stronger protections that relieve consumers of the burden of medical debt.
“When someone is scared and in pain, the last thing they should think about is whether seeking care will take away their ability to buy a house or land a job. Unfortunately, this is the reality for many people today,” said Bonta.
“There is no need for medical debt to appear on credit reports as it is not a good predictor of repayment, and it pushes more and more people into a harmful debt cycle that is very difficult to escape,” he said.
In support of the proposed rule, consumer advocacy organizations argue that medical debt is an unreliable indicator of financial risk. As a result, consumers with medical debt are prevented from qualifying for loans, renting an apartment, or securing a job. Consumer advocates stated that the healthcare system is broken and has affected many families nationwide.
