Federal Judge Reverses Rule Protecting Americans from Medical Debt in Credit Reports
In a recent ruling, a federal judge in Texas overturned a Biden administration rule aimed at removing medical debt from credit reports, impacting approximately 15 million Americans. The rule, which sought to alter how credit scores are calculated by removing $50 million in medical debt, was deemed unlawful by Judge Sean Jordan, who argued the Consumer Financial Protection Bureau (CFPB) exceeded its authority under the Fair Credit Reporting Act. The CFPB had projected that the changes would improve credit scores and increase mortgage approvals. The judge’s decision prevents these changes from being implemented, but he did note the bureau can “encourage” creditors to use other categories of information.
John Q. Hosedrinker