Major changes are coming to your credit report in March, and if you're not paying attention, your credit score could take a hit. The Trump administration is implementing three significant changes that could impact your ability to get loans, buy a home, or even secure a job.
Medical Debt Reporting: The Consumer Financial Protection Bureau (CFPB) had finalized a rule under the Biden administration to bar medical debt from being included on credit reports. This rule was set to take effect in March and would have removed $49 billion in debt from the credit reports of at least 15 million people. However, President Trump signed an executive order pausing all pending rulemaking activity for federal agencies, including the CFPB's medical debt rule. This means that medical debt will continue to be reported, potentially affecting your credit score.
Credit Card Late Fees: In March 2024, the CFPB announced a rule capping late fees on credit cards at $8 for the largest card companies. The typical late fee is about $30. This cap was predicted to save American families more than $14 billion a year. However, the financial industry has sued to block many of the rules, arguing that they might do more harm than good. The outcome of these legal challenges could impact how late fees are reported on your credit report.
CFPB Shutdown: The Trump administration has taken steps to shut down the CFPB, which was responsible for implementing many consumer protection rules. The agency's future is uncertain, and its initiatives, such as capping overdraft fees and addressing old medical debt on credit reports, are in limbo. This uncertainty could lead to changes in how your credit report is managed and what information is included.
These changes highlight the importance of staying informed about your credit report and understanding how new policies can affect your financial health. Make sure to monitor your credit report regularly and take proactive steps to protect your credit score.
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