It also said that consumers found that medical bills were often inaccurate with charges that should have been covered by insurance or financial assistance programs, making them more problematic for credit reports.

“No one should be denied economic opportunity because they got sick or experienced a medical emergency,” Vice President Kamala Harris said in announcing the change. “This will be life-changing for millions of families, making it easier for them to be approved for a car loan, a home loan, or a small-business loan.

“As someone who has spent my entire career fighting to protect consumers and lower medical bills, I know that our historic rule will help more Americans save money, build wealth, and thrive.”

The rule, which will go into effect 60 days after being published in the Federal Register, must survive the next administration that may try to undo the new rule and legal challenges. The Association of Credit and Collection Professionals has protested against the change, claiming it will reduce consequences and in the long run harm the people it was meant to help.

CFPB Director Rohit Chopra said it is the debt collectors who are worried that they will no longer be able to harass and use strong-arm tactics against people facing health difficulties.

“People who get sick shouldn’t have their financial future upended,” Chopra said in a statement. “The CFPB’s final rule will close a special carveout that has allowed debt collectors to abuse the credit reporting system to coerce people into paying medical bills they may not even owe.”