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Debt forgiveness took a new twist from the outgoing Biden-Harris administration as a new final rule was announced impacting credit scores for millions of Americans.

Leveling the playing field to leftists often involves dragging others who’d saved and sacrificed to succeed back down to where they started. Following efforts to erase student debt for those still paying back their loans with no regard for those who’d already done so, Vice President Kamala Harris took a victory lap on removing medical debt from credit score consideration that could dramatically impact the economy.

“No one should be denied economic opportunity because they got sick or experienced a medical emergency,” began a statement from the twice-failed presidential hopeful Monday as a final rule was announced by the Consumer Financial Protection Bureau (CFPB). “That is why President Biden and I cancelled over $1 billion in medical debt — part of our overall plan to forgive $7 billion by 2026 — with support for our American Rescue Plan, legislation that I advanced with my tie-breaking vote in the Senate. We also reduced the burden of medical debt by increasing pathways to forgiveness and cracking down on predatory debt collection tactics.”

Set to remove $49 billion in unpaid medical debt from credit reports, impacting over 15 million Americans, the vice president went on, “Today, we are building on this meaningful work by announcing an unprecedented final rule that will make it so medical debt is no longer included in your credit score. This will be lifechanging for millions of families, making it easier for them to be approved for a car loan, a home loan, or a small-business loan. As someone who has spent my entire career fighting to protect consumers and lower medical bills, I know that our historic rule will help more Americans save money, build wealth, and thrive.”

With the rule expected to raise credit scores an average of 20 points for those affected, and lead to approval of about 22,000 more mortgages per year, CFPB Director Rohit Chopra had said in his own statement, “People who get sick shouldn’t have their financial future upended.”

“The CFPB’s final rule will close a special carveout that has allowed debt collectors to abuse the credit reporting system to coerce people into paying medical bills they may not even owe,” he went on as, in 2022, Equifax, Experian and TranUnion had announced they would no longer include such debts if they were less than a year old as well as debt under $500.

The CFPB had argued that medical debt was a poor predictor of an individuals ability to repay a mortgage. Meanwhile, it was worth noting that the 2007 financial crisis had begun with the collapse of the housing market brought about in part by subprime mortgage lending.

Of further note, the medical debt rule for credit scores did not impact borrowers who were using credit cards to pay back what they owed.

After four years of regulatory overreach under the Biden-Harris administration impacting everything from appliances to American’s energy independence, Utah Sen. Mike Lee (R) called up Kentucky Sen. Rand Paul’s (R) effort to curb the bloated bureaucracy through the Regulations from the Executive in Need of Scrutiny (REINS) Act.

“The REINS Act is not optional,” wrote Lee on Monday, “Congress must pass it this year…Or we lose our freedom altogether.”

“Unless we outlaw lawmaking by unelected bureaucrats–by passing the REINS Act–we will remain stuck…But if we pass it, we’ll find that our best days are yet to come,” he’d also stated. “Ask your members of Congress where they stand on the REINS Act.”

Kevin Haggerty
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