The move, which comes less than two weeks before President-elect Donald Trump is set to take office, represents a challenge to the new administration.

The Consumer Financial Protection Bureau on Tuesday finalized a new federal rule that would eliminate medical debt from consumer credit reports. There is an estimated $49 billion in unpaid medical bills from the credit reports of roughly 15 million Americans,

Credit-reporting companies and debt collectors have previously opposed the policy, which could face political and legal challenges under incoming President Donald Trump.

Biden admin moves to scrub medical debt from credit reports. What you need to know - Unpaid medical bills will no longer appear on credit reports, where they can block people from mortgages, car loans

The Biden Administration announced an initiative Tuesday to remove an estimated $49 billion in medical debt from credit reports.

Officials said the new regulation, adopted despite objections from the banking and consumer data industries, would remove $49 billion in medical bills from the credit reports of about 15 million Americans.

The move, which comes less than two weeks before President-elect Donald Trump is set to take office, represents a challenge to the new administration.

U.S. consumers will no longer have medical debt appear on their credit reports under to a new rule the CFPB finalized Tuesday.

The Consumer Financial Protection Bureau rule will remove $49 billion in medical debt from the credit reports of more than 15 million Americans, according to the bureau.