A groundbreaking regulation will soon ban the inclusion of medical debt on credit reports, offering financial relief to millions of Americans. The new rule, which takes effect 60 days after its publication, will erase an estimated $49 billion in medical debt from the credit reports of approximately 15 million people, with average credit scores expected to rise by 20 points.

The regulation also prohibits lenders from using certain medical information in loan decisions and prevents medical devices like wheelchairs or prosthetics from being repossessed due to unpaid loans. Consumer advocates hailed the decision, emphasizing its potential to help families secure essential loans for homes, cars, and small businesses.

However, the rule faces opposition from Republican lawmakers, credit agencies, and debt collectors, who argue it may undermine credit system accuracy and increase financial risk. Despite potential challenges, the change is anticipated to transform the financial futures of millions, removing a significant barrier tied to healthcare costs.