US EditionTrump administration moves to overrule state laws protecting credit reports from medical debt
New guidance from the Consumer Financial Protection Bureau reverses Biden-era rules, risking credit harm for 15 million Americans with medical debt, amid ongoing state-federal legal conflicts.
- The CFPB issued guidance Tuesday asserting federal law bars states from excluding medical debts from credit reports, reversing Biden-era policies and signed by Russell Vought, acting CFPB head.
- After trade groups representing credit reporting agencies and debt collectors sued earlier this year, the CFPB says the Fair Credit Reporting Act generally preempts state laws, citing a July ruling by Judge Sean Jordan.
- KFF estimates Americans owe roughly $220 billion in medical debt, with about 100 million people carrying some debt and $49 billion appearing on credit reports, which Biden’s rule would have removed.
- The guidance is not legally binding and its fate is likely to be decided in court, with industry groups citing it to challenge protections in 15 states and advocates warning it may chill further state action.
- Advocates warn the change could compound financial strain as experts project premiums to rise by more than 75%, millions may lose coverage in the coming years, and the CFPB cited an Iraq War veteran's prosthetic limbs repossession.
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CTNewsJunkie.com
Trump Team Takes Aim at State Laws Shielding Consumers’ Credit Scores From Medical Debt
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Anti-Aging, Acupuncture and Health NewsTrump Team Targets State Laws Shielding Consumers' Credit Scores From Medical Debt
(MedPage Today) -- The Trump administration took another step Tuesday to weaken protections for Americans with medical debt, issuing new guidance that threatens ongoing state efforts to keep that debt off consumers' credit reports. More than a...
The Columbian
Trump team takes aim at state laws shielding consumers’ credit scores from medical debt
The Trump administration took another step Tuesday to weaken protections for Americans with medical debt, issuing new guidance that threatens ongoing state efforts to keep that debt off consumers’ credit reports. Read more...
Trump Administration Move Could Put Medical Debt Back On US Credit Reports, Experts Warn Of 'Chilling Effect'
The Trump administration has issued a new guidance that could undermine ongoing state efforts to keep medical debt off consumers' credit reports, reversing previous credit protections.
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