SIOUX FALLS, S.D. – South Dakota is among the states with the highest percentage of residents carrying medical debt.
A new federal rule announced this week could ease some of the pressure when they apply for loans. The Consumer Financial Protection Bureau has finalized a rule that says credit agencies can’t share a person’s medical debt history with a lending institution requesting credit information.
The only debt details that can be relayed to determine a person’s creditworthiness are mortgages, car loans, credit cards, and similar activity. Patricia Kelmar of the Public Interest Research Group says groups like hers had long pushed for this move.
According to the Peterson-K-F-F Health System Tracker, nearly 18 percent of South Dakota adults report having medical debt. The national average is 8 percent. Some credit agencies already exclude medical debt in loan situations.
Kelmar acknowledges the incoming Trump administration could seek to reverse this rule change, as some advisers have said they want to do away with the Consumer Financial Protection Bureau altogether.
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