SIOUX FALLS, S.D. (Dakota News Now) – A recent federal ruling will remove medical debt from consumer credit reports, impacting roughly 15 million people by removing $49 million in medical bills from these reports.
The Biden Administration is finalizing this Consumer Financial Protection Bureau (CFPB) ruling that would also ban lenders from using certain medical information in loan decisions.
However, Karl Adam, the South Dakota Bankers Association President is not convinced this change is as good as it sounds.
He said that it’s important that all information pertaining to debt is listed on these reports.
“If you don’t, what happens is the bank could be in a position to have a loan that may not meet its credit underwriting criteria, as a result of that the individual may have difficulty paying,” Adam said.
In return, this would hurt the customer by putting them in a position of delinquency.
South Dakota …