NAACP Celebrates New Rule Banning Medical Debt From Credit Scores
FOR IMMEDIATE RELEASE
January 8, 2025
Contact: Alicia Mercedes, amercedes@naacpnet.org
WASHINGTON — On Tuesday, the Biden-Harris Administration solidified a ban on utilizing medical debt as a factor in determining credit scores. The move, which will also remove billions in debt from credit reports, is expected to provide economic empowerment to millions of Americans. Historically, Black Americans have suffered from disproportionately negative health outcomes and restricted access to quality, affordable healthcare due to deeply entrenched systemic racism.
"Medical emergencies should never stand in the way of anyone being able to buy a home, food for their family, or strive for generational wealth. It is outrageous that for this long, we have tolerated a reality in which medical debt has prevented countless Americans — disproportionately Black — from being able to participate in the economy and have financial freedom," said NAACP's Director of Opportunity, Race and Justice Keisha Bross. "The NAACP is no stranger to this fight. For decades, we have worked to break down the barriers caused by discriminatory and predatory credit and lending practices. From canceling approximately $180 billion in student debt to eliminating medical debt from credit reports, we're thrilled to see President Biden and Vice President Harris closing out their final weeks prioritizing economic empowerment. We can only hope this sets an example for the incoming administration."
Debt continues to be a key driver in widening the Racial Wealth Gap, as Black Americans suffer from higher student loan, medical debt, and criminal justice fines due to deeply entrenched systemic racism.
"While this new rule marks a historic step, we cannot allow the final two weeks of the Biden-Harris administration to pass by without additional actions. From pardoning Americans in federal prison facing disproportionate sentences to additional rounds of student debt cancellation, there is much work left to do in the final stretch. This is the time to leave a legacy and positively impact the economy for Black people and all Americans," said NAACP President and CEO Derrick Johnson.
The NAACP's debt relief work extends far beyond the healthcare industry. Over the past 4 years, the Association has mobilized hundreds of thousands in the fight to cancel student debt through the 50K & Beyond campaign, worked with the Department of Education to roll out critical programs, and successfully advocated for delayed repayments six times.
Credit and lending impact all Americans, and we cannot stop with this win. Now, we're calling on President Biden to fire MOHELA, one of America's largest holders and services of student loans. MOHELA has gotten in the way of President Biden's SAVE plan, which could help millions of borrowers. By instructing the Department of Education to fire MOHELA, President Biden can resume actions on student debt relief before he leaves office.
To learn more about the NAACP's work to create a more inclusive economy, visit our website.
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The NAACP advocates, agitates, and litigates for the civil rights due to Black America. Our legacy is built on the foundation of grassroots activism by the biggest civil rights pioneers of the 20th century and is sustained by 21st century activists. From classrooms and courtrooms to city halls and Congress, our network of members across the country works to secure the social and political power that will end race-based discrimination. That work is rooted in racial equity, civic engagement, and supportive policies and institutions for all marginalized people. We are committed to a world without racism where Black people enjoy equitable opportunities in thriving communities.