New Jersey Shore To Open Memorial Day Weekend

New Jersey shore boardwalk

Residents itching to visit the New Jersey shore over the Memorial Day weekend can break out bathing suits and head to the beach.

Gov. Phil Murphy told CNBC’s “Squawk on the Street” he hopes to reopen gyms, barber shops and other nonessential businesses with limits in a few weeks, but did not provide a specific timeline.

“This is a delicate balance without question,” the Democratic governor told the network. “We’re as money ball as we can be and we say all the time that data determines dates.”

The state has allowed nonessential retailers to reopen for curbside pickup, and will allow beaches to open for Memorial Day weekend — but getting a haircut or getting in shape at the gym is still on hold.

“We chose to rip the Band-Aid off the economy, which has been extraordinarily painful for job loss, for small businesses, for many of our sectors,” Murphy told the network. “But the alternative was to let the virus go, or in this case open up too early, in which case I think it’s throwing gasoline on the fire, not just on the public health piece of this, but you also have a much deeper hole economically.”

With 10,747 coronavirus deaths as of May 21, New Jersey is second only to New York where there have been 28,540 fatalities, followed by Massachusetts with 6,006, according to the Centers for Disease Control and Prevention (CDC). COVID-19 has infected nearly 151,000 people across New Jersey.

Murphy said indoor businesses where people interact are more complicated.

“Outside’s easier than inside, so the toughest nuts to crack are inside, no ventilation, sedentary,” the governor said. “That means indoor dining is going to be more complicated than outdoor dining.”

All states have reduced restrictions meant to curb the spread of the coronavirus and some nonessential businesses have reopened. But there doesn’t appear to be consensus.

As reported here on Monday, Georgia was the first state to welcome residents back to the gym. LA Fitness and other exercise facilities were forced to close in March amid the global coronavirus pandemic. LA Fitness has more than three dozen gyms in Greater Atlanta and plans to reopen on Friday (May 22).

But these decisions to open fitness centers have been controversial. There have been instances nationwide where gym owners have defied orders to close.

Last week, a Vermont judge granted the state a temporary restraining order against Club Fitness of Vermont owner Sean Manovill who opened his gym despite Gov. Phil Scott’s executive order to close gyms, the Burlington Free Press reported.

The ruling prohibits the gym from operating until the state allows it to open.

“I’m disappointed we have to go to court to seek compliance with the governor’s lawful executive order,” said Vermont Attorney General T.J. Donovan in a statement.

CFPB Bans Medical Debt From Consumer Credit Reports

Medical debt will no longer appear on consumers’ credit reports under a new government rule.

The Consumer Financial Protection Bureau (CFPB)’s newly-finalized regulation, announced by the White House Tuesday (Jan. 7), will remove $49 billion in medical debt from more than 15 million Americans’ credit reports.

That means lenders will no longer be able to factor medical debt into decisions about mortgages or car loans.

“No one should be denied economic opportunity because they got sick or experienced a medical emergency,” Vice President Kamala Harris said in the White House announcement, adding that the rule would be “lifechanging” for millions of households.

The CFPB says the rule change will raise affected consumers’ credit scores by 20 points on average and could lead to 22,000 additional mortgage approvals each year. The White House also notes that several state and local governments have eliminated roughly $1 billion in medical debt for their residents, with that figure on track to reach $7 billion by the end of 2026.

Research from the CFPB finds that medical bills are “poor predictors” of someone’s ability to repay loans, and that medical bills “are often confusing and erroneous,” the announcement said.

A report by the regulator from 2022 estimated that medical bills accounted for $88 billion in debt on consumers’ credit reports. In the wake of the CFPB’s findings, the three main credit reporting agencies announced they would stop including paid medical debts, unpaid medical debts less than a year old, and medical debt under $500 from credit reporting.

“Despite these voluntary changes, 15 million Americans still have $49 billion in outstanding medical bills in collections appearing in the credit reporting system,” the announcement noted.

The change could be good news for the millions of Americans who live paycheck to paycheck and struggle to pay their bills. As PYMNTS wrote last month, a little more than half of this group had no readily available savings.

Meanwhile, research last year from PYMNTS Intelligence found that unexpected medical bills were among the most common unplanned expenses for consumers, costing them an average of about $6,200.

“Our study found that credit-marginalized consumers — those who have been rejected for at least one credit product in the past year — are 47% more likely than the average consumer to face unexpected expenses,” PYMNTS wrote last spring. “And, because of their credit-challenged status, they are more than twice as likely to turn to high-interest credit products to cover emergency costs.”