Latest news with #financialprotection
Yahoo
a day ago
- Business
- Yahoo
US Rule Keeping Medical Debt Off Credit Reports Is Now Gone: 3 Things To Do Now
You may be wondering what a judge's decision to vacate a rule about medical debt and credit reports means for your money. According to CNN, a judge said the Biden-era rule keeping medical debt off credit reports exceeded the Consumer Financial Protection Bureau's authority under the Fair Credit Reporting Act. Be Aware: Learn More: Here are some things to do now in the wake of this ruling. Also see six places that could get rid of your medical debt. What the Ruling Means The overturning of this rule means that unpaid medical bills will remain on credit reports. According to CNN, when the ruling was issued, the bureau said those who have medical debt on their credit reports could have seen an average 20-point increase in their credit scores. Additionally, the rule could have led to the approval of about 22,000 more mortgages each year. Further, the rule was expected to have removed nearly $50 billion in medical bills from the credit reports of around 15 million people, per CNN. Some consumers were also hopeful the rule would have banned lenders from using part of their medical information in loan decisions. Proponents of overturning the bill claim that it would harm the accuracy of credit reports and increase financial system risks, per CNN. Check Out: What You Can Do Now Even with this rule overturned, you still have options for trying to deal with unpaid medical debt and removing it from your credit report. Dispute Debt As noted by CBS News, one step may be to dispute medical bills you don't actually owe. After all, errors in billing and reporting are common in healthcare. Look Into Debt Settlement You may be able to negotiate a settlement for less than the full amount owed. Be sure to put any agreement in writing before you send in that payment. Explore Financial Assistance Options Now may be a great time to look into assistance options for paying your medical bills. Many healthcare providers offer at least some type of assistance that may help you. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 7 Things You'll Be Happy You Downsized in Retirement 3 Reasons Retired Boomers Shouldn't Give Their Kids a Living Inheritance (And 2 Reasons They Should) This article originally appeared on US Rule Keeping Medical Debt Off Credit Reports Is Now Gone: 3 Things To Do Now Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Khaleej Times
a day ago
- Automotive
- Khaleej Times
New UAE insurance briefing introduces the case for full-cover vehicle policies
A newly released report has highlighted the rising demand for car insurance in Dubai with more vehicle owners opting for comprehensive coverage that offers broader financial protection beyond the mandatory third-party liability policies required by law. As the UAE's roads become busier and weather-related risks more frequent, industry experts are observing a shift in consumer preference toward all-inclusive policies that cover not just third-party damage but also personal vehicle loss or repairs due to accidents, theft, vandalism, or natural disasters. The announcement emphasises how comprehensive motor insurance is gaining relevance among both individual car owners and fleet operators in the country. Compared to third-party plans, which are only designed to compensate affected third parties, comprehensive policies also cover the insured's own vehicle, making them a more practical solution for long-term road safety and financial security. "Comprehensive coverage is no longer seen as optional. It's increasingly viewed as a smart investment, especially in regions where unpredictable road conditions and high repair costs are common," said a company spokesperson involved in the release of the overview. With insurance providers offering optional add-ons such as roadside assistance, personal accident cover, and regional extensions, policyholders now have more control over tailoring their plans to suit their lifestyle. Additionally, optional natural disaster riders are becoming more sought-after following seasonal flash floods and rain-related incidents across the Emirates. This overview aims to raise awareness among UAE residents about the practical benefits of enhanced motor insurance - helping drivers make more informed decisions and reduce financial vulnerability. For motorists navigating the UAE's fast-moving roads, comprehensive car insurance is no longer just a choice - it's a safeguard for the future.
Yahoo
17-07-2025
- Business
- Yahoo
How to Limit Medical Debt's Impact on Your Credit
Planning Medical expenses Credit - Getty Images For the millions of Americans struggling to pay off the costs of expensive medical procedures, the looming debt is accompanied by another threat: that the unpaid medical bills could drag down their credit scores, making it harder to get a credit card or buy a home or car. And now a rule that would have addressed that issue will no longer be going into effect. In the final days of President Joe Biden's term, the Consumer Financial Protection Bureau (CFPB) issued a rule that would have removed medical debt from credit reports. The goal was to 'reduce the burden of medical debt and ensure that patients are not denied access to credit for home mortgages, car loans, or small business loans due to unpaid medical bills,' according to the White House press release at the time. But under the Trump Administration, the CFPB flipped its stance on the rule, which had not yet gone into effect. And on Friday, a federal judge, who was appointed by President Donald Trump, vacated the rule, stating that it exceeded the CFPB's authority under the Fair Credit Reporting Act. Roughly $88 billion of unpaid medical bills are in collections across the U.S., according to the CFPB, which estimates that the issue affects about one in five Americans. JoAnn Volk, a research professor and co-director of the Center on Health Insurance Reforms at Georgetown University, says the judge's ruling 'eliminates an important protection for families who are going to be shut out of credit because of this medical debt that they could not avoid.' How medical debt impacts credit CFPB research has indicated that medical debt on credit reports is 'a poor predictor' of whether a person will repay a loan, but still 'contributes to thousands of denied applications on mortgages that consumers would be able to repay,' the agency said at the time the Biden-era rule was finalized. 'We know from prior studies that medical debt does not have meaningful predictive power for people's credit worthiness. Part of the reason is that medical debt, more than any other form of debt, is the result of bad luck, not bad financial behavior,' says Neale Mahoney, an economics professor at Stanford University and director of the Stanford Institute for Economic Policy Research. 'Nobody plans to go to the hospital or have a kid slip and fall and need to be rushed to the ER and have to pay those medical bills; that is just bad luck.' The Biden-era rule would have led to the approval of about 22,000 additional, affordable mortgages annually, and the credit scores of people with medical debt on their credit reports would increase by an average of 20 points, the CFPB estimated. Mahoney says vacating it will reduce credit access for people struggling with medical debt. There are some steps that can be taken to mitigate that impact—though they're limited. Financial assistance options Mahoney advises people who find themselves faced with burdensome medical bills to first take advantage of their hospital's or physician's financial assistance program. Many hospitals have such programs, which are often listed on the back of the bill, that can reduce or sometimes even eliminate the cost depending on a patient's income or assets. 'It can be a slog to work through the process, but for many people, addressing the issue with the hospital is better than letting that issue fester and then become a medical debt with a debt collector,' Mahoney says. There are some organizations, like Dollar For, that help patients navigate these financial assistance programs. The CFPB offers some general tips for people dealing with medical debt, such as confirming the unpaid bill with the appropriate source, contacting their insurer if they believe the service should have been covered, and disputing any errors in the bill or credit report. Debt payment plans If a person's debt has been sold to a debt collector and they're concerned about its potential impact on their credit score, Mahoney recommends that they try and negotiate a payment plan with the debt collection company. Sometimes, a debt collector may be open to receiving a payment that is more within reach for the patient and, in turn, removing that debt from the credit report, he says. Contact us at letters@
RNZ News
15-07-2025
- Business
- RNZ News
What would happen if a KiwiSaver provider failed?
There is always the risk that investments could go wrong, but KiwiSaver schemes do have some protections in place. File photo. Photo: 123rf Some Australian investors may be facing the loss of their investments after the failure of a superannuation provider, but KiwiSaver members are being reassured that the situation is different here. Australian media has reported that up to A$450 million may have been lost by the First Guardian Master Fund, which went into liquidation early this year. Co-director David Anderson was reported to be accused of transferring funds into his own bank account. David Callanan, general manager of corporate trustee services at Public Trust, one of the supervisors of New Zealand's KiwiSaver schemes, said there were different protections for KiwiSaver members, which should prevent such a scenario. Providers are subject to oversight from a supervisor, who can also choose to appoint a third-party custodian or act as custodian themselves. "I think we've got a more effective regulatory regime. It's set up really well to protect KiwiSaver members and investors." He said the supervisor was "effectively a trustee". "We're in place to ensure that KiwiSaver providers are doing the right thing for investors. If there was an issue with a KiwiSaver provider then the supervisor would be able to step in and take control back and come up with a solution." He said that could involve appointing another manager if necessary. "We have the power to step in and to take control back in the interests of those investors." He said, because there were a limited number of independent supervisors, they were closely regulated by the Financial Markets Authority. "In Australia there are hundreds of responsible entities who play that role." Callanan said if a fund manager was failing it would not be able to access investor funds. "That's another area that in those scenarios that I've seen in Australia hasn't worked. You've got fund managers just dipping into investor monies, you know, to go and buy a Lamborghini or whatever they feel like on a whim. "That just couldn't happen here because we've got independent custodians and again, Public Trust is an independent custodian for a number of KiwiSaver providers, and that can give investors confidence." He said there was also a strong conflict of interest regime in place. "Even for fund managers who might undertake what is called a related party transaction…the Financial Markets Conduct Act stipulates the process they have to go through to work with their supervisor to get that transaction across the line." But that does not mean you can not lose money in KiwiSaver. Callanan said there was always the risk that investments could go wrong and financial markets might not perform as expected. "But if you're with a KiwiSaver provider in New Zealand you can have confidence that there's a mechanism in place in the supervisors that if something was to go wrong with that manager, the supervisor would step in and stop you falling down the metaphorical cliff. "There's always the possibility that someone makes a silly financial decision or you could pick an investment that's really bad. My advice would be to avoid a situation where you have all your eggs in one basket." He said that could only happen with the KiwiSaver schemes that allow people to choose their own investments. "Most KiwiSaver providers are offering these diversified products and you can be really confident you've going to get a good outcome because you've spread your risk in an appropriate way." Financial Markets Authority director of markets, investors and reporting John Horner said the law prescribed the segregation of duties in relation to managed investment schemes. "Generally, while the manager of the scheme is responsible for investment decisions , the custodian is responsible for holding and safeguarding the scheme property - segregation of legal ownership - and for keeping records of the scheme property - segregation of functions. Supervisors licensed by the FMA are responsible for custody. Depending on the scheme's governing documents, a supervisor may appoint another appropriate independent person as custodian. "MIS managers and supervisors are obliged to act with care, diligence and skill. MIS managers are expected to maintain strong capital positions, professional indemnity insurance, parent company guarantees or other similar arrangements. Managers are also required to notify the supervisor if they are, or are likely to become, insolvent. The supervisor is responsible for monitoring the manager's performance of its functions and obligations, as well as its financial position. "In the event that the fund manager becomes insolvent or is otherwise unable to continue operations, the supervisor has the power to appoint a temporary manager to ensure the continued management and operation of the fund until a permanent replacement is appointed." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Yahoo
13-07-2025
- Business
- Yahoo
Wealthy In-Laws Tell Woman She Needs to Quit Her Job. She Declines Unless They Set Up a Trust Fund for Her
A woman asked the internet if she acted the right way around her soon-to-be in-laws Her partner's parents told her that she should "quit working and be a stay-at-home mom" The woman asked for financial protection from the family if she were to quit her jobDealing with in-laws can be hard enough without mixing finances. In a recent Reddit post, a 27-year-old woman shared that her "fiance's parents are loaded. Old money loaded." While she earns over $170,000 a year, her fiancé, a teacher, "doesn't make as much" but has a trust fund from his family. "Recently, I had a weird conversation with him and his folks," the woman shared. "They think that after the wedding, I should quit working and be a stay-at-home mom. I thought they were joking and kind of laughed. They are perfectly serious. They think it's emasculating that I earn more than him." Although she will make more than her fiancé over the course of her career, she pointed out that "his trust fund is low seven figures," and money won't be an issue. "He could afford to pay me what I earn yearly but he can't due to the stipulations of his trust," she added. "His mom on the other hand has lots of interest built up in her trust." She noted that she doesn't want to quit her job without any protections and "offered a solution [she] thought was fair." She suggested "they set up an unrecoverable trust" for her. "They must contribute my gross earnings yearly with bumps for anticipated raises and promotions. The deposits would be for the next 35 years That [way] I'm a stay at home mom, my fiancé is the breadwinner, and I'm protected in the case of a divorce." However, the family went "nuts" at the suggestion and told her she was "ridiculous for thinking they will give [her] money." So, she offered another "compromise." "I sign a prenup wherein I am entitled to half of [my fiancé's] trust fund in the case of divorce if I give up my career," she suggested. However, her idea was "also not acceptable to them." "I'm kind of at a loss. Do they honestly think I would give up my career with zero safety net?" she wondered. Never miss a story — sign up for to stay up-to-date on the best of what PEOPLE has to offer, from celebrity news to compelling human interest stories. While the poster's mother says she's "being rude putting everything in such stark monetary terms," the woman believes she's "being reasonable," which most commenters agreed with. "They are asking you to give up financial security for him, but don't want him to risk anything in return. You are 27, making $170,000 a year, you are obviously good at what you're doing and have put the work in," one commenter wrote. "This is the time that your fiancé should be standing up for you and shutting his family down; his response here should tell you everything you need to know about your future marriage. Don't do it, protect your future first." Read the original article on People
