Joint Resolution Moves to Kill CFPB Rule Protecting Medical Info in Credit Decisions

This joint resolution is straightforward—it aims to completely eliminate a rule issued by the Consumer Financial Protection Bureau (CFPB) that was designed to protect your medical information. The CFPB's rule (found at 90 Fed. Reg. 3276) basically told creditors and consumer reporting agencies they couldn't use your medical details to make decisions about your creditworthiness. This resolution, if passed, throws that protection out the window.

Unpacking the Medical Info Rule Wipeout

The now-endangered CFPB rule was put in place to prevent creditors from digging into your medical history when deciding whether to give you a loan or what interest rate to charge. It also stopped credit reporting agencies from including medical information in your credit report. Think of it like this: your past health issues couldn't be held against you when applying for a mortgage, car loan, or credit card. This resolution seeks to undo that, allowing that information to possibly be used in financial assessments.

Real-World Impact: Your Health, Your Credit?

If this resolution succeeds, it could change the game for anyone with a significant medical history. Imagine you had a serious illness a few years back, resulting in substantial medical bills. Even if you've since recovered and are financially stable, under the rescinded rule, that history couldn't be a factor in your credit applications.

If this resolution passes, creditors could potentially access and use that information. This might mean higher interest rates, lower credit limits, or even outright denial of credit based on past medical conditions. For example, a small business owner who battled cancer could face tougher loan terms, or a young professional with a history of a chronic condition might find it harder to get a mortgage. The specifics would depend on how creditors choose to use this newly available information, but the potential for impact is significant.

The Bigger Picture: Privacy and Financial Power

This resolution goes beyond just medical bills. It touches on the broader issue of how much personal information financial institutions should have access to. The CFPB rule was intended to draw a clear line between medical history and financial decisions. By removing that line, this resolution raises questions about the balance between a creditor's right to assess risk and an individual's right to medical privacy. It also highlights the ongoing tension between consumer protection and the financial industry's desire for more comprehensive data. The practical challenge is that once medical information becomes fair game, it's difficult to control how it's used and interpreted in credit decisions.