Boost Your Credit Score! The CFPB finalized a rule removing medical debt from credit reports. Experian, Equifax, and Transunion already reduced medical debt's impact, reflecting its unreliability as a creditworthiness indicator (per a 2014 CFPB report). Lenders can no longer use medical info in loan decisions.
This means a healthier credit future for you!
The Consumer Financial Protection Bureau (CFPB), established by the Dodd-Frank Act in 2010, oversees and regulates the financial industry. Consumers can lodge complaints against financial institutions, akin to DOT complaints against airlines. I've had significant successes through CFPB complaints, such as resolving delays in fund transfers and waiving penalties on CDs.
The CFPB is now imposing a cap of $8 on late fees for credit cards from major banks, a change from the previous range of $32-$41. This cap will not be subject to automatic inflation adjustments.
Bank of America has been fined $250 million by the CFPB, with $100 million going to affected customers and $90 million as penalties to the CFPB. An additional $60 million in penalties was imposed by the Office of the Comptroller of the Currency. The bank was found guilty of systematically charging excessive fees to customers with insufficient funds, failing to provide promised credit card rewards, and opening unauthorized accounts using personal information.
The penalties highlight the bank's unethical practices and serve as a reminder of the importance of protecting consumer rights.
Great news for those with medical debt under $500! As of April 11, 2023, this debt will be removed from credit reports. This change will have a positive impact on credit scores for many individuals. If you have medical debt under $500 on your credit report, it's important to check that it has been removed.
This can be done by reviewing your credit report or contacting the credit reporting agency. This change is a step towards helping individuals manage their finances and improve their credit scores.
