A Biden-era rule, announced last summer but never put into effect, sought to forbid credit reporting agencies, including Equifax, Experian and TransUnion, from using medical debts over $500 on the detailed credit history reports that lenders use to judge creditworthiness. Amid opposition from industry groups and the Trump administration, a federal judge then struck down the rule this month.
Here’s what consumers should know moving forward.
Why was the medical-debt rule overturned?
The rule was opposed by debt collectors, who argued it would have encouraged financial delinquency, as well as banks and other lenders that use credit reports. Soon after President Donald Trump took office and dramatically downsized the Consumer Financial Protection Bureau, this camp pinned its hopes on a lawsuit in which these trade groups argued that the CFPB under the Biden administration had overstepped its authority.
Disclaimer
The information contained in South Florida Reporter is for general information purposes only.
The South Florida Reporter assumes no responsibility for errors or omissions in the contents of the Service.
In no event shall the South Florida Reporter be liable for any special, direct, indirect, consequential, or incidental damages or any damages whatsoever, whether in an action of contract, negligence or other tort, arising out of or in connection with the use of the Service or the contents of the Service. The Company reserves the right to make additions, deletions, or modifications to the contents of the Service at any time without prior notice.
The Company does not warrant that the Service is free of viruses or other harmful components
