Today the Consumer Financial Protection Bureau is releasing a study on how the collection of medical debt affects a consumer’s credit score. What we found is that consumers’ credit scores may be overly penalized for medical debt that goes into collections and shows up on their credit report. This is because credit scoring models may be underestimating the creditworthiness of consumers who owe and pay back medical debt in collections. Credit reporting plays a critical role in consumers’ financial lives. Credit reports contain detailed information about a person’s financial history and use of credit. Credit scores are numbers that […]

Click here to view original article Prepared Remarks of CFPB Director Richard Cordray on the Medical Debt Study Press Call