Medical Debt Relief Act of 2023

The Medical Debt Relief Act of 2023 would prevent credit bureaus from reporting medical debt on credit reports and stop creditors from using medical debt information when making credit decisions. It defines medical debt as any debt related to medical services, products, or devices, and requires the removal of existing medical debt entries from credit reports. Within one year of enactment, the Consumer Financial Protection Bureau must update regulations to prohibit creditors from considering medical debt in loan or credit applications. This directly affects consumers with medical debt (who may see improved credit scores) and creditors (who must adjust their credit evaluation practices).