US consumer watchdog asks court to scrap medical debt regulation

[BumRushDaShow]

Source: Reuters

May 1, 2025 9:10 PM EDT Updated 11 hours ago


May 1 (Reuters) - The U.S. Consumer Financial Protection Bureau has joined with industry groups in asking a federal court to scrap a Biden-era regulation barring consumer credit reports from including medical debt, according to court papers. In a motion submitted on Wednesday in a Texas federal court, the CFPB joined two industry groups representing banks, credit unions and credit bureaus in asking a judge to strike down the rule, saying the CFPB had exceeded its legal authority and violated laws governing the crafting of regulations.

The rule is currently due to go into effect in June after the court issued a stay in February. If approved by a judge, the move would undo a major policy plank championed by former Vice President Kamala Harris. Officials in the prior administration said it would remove up to $49 billion in medical debts from the credit reports of 15 million Americans. In the United States, patients seeking medical treatment sometimes borrow to cover the cost because they either lack insurance or their plans require them to pay part of the cost.

Representatives for the CFPB and the Cornerstone Credit Union League, which had sued to block the rule, did not respond to requests for comment. Dan Smith, president of the Consumer Data Industry Association, also a party to the lawsuit, welcomed the move, saying it would help protect a "full, fair and accurate" credit reporting system.

Among other far-reaching changes, Trump has worked to reverse much of the Biden administration's marquee consumer safeguards. Prior CFPB leadership said research showed medical debts, which patients do not incur out of choice, were poor indicators of borrowers' ability to repay but could hinder consumers from accessing loans for cars, homes and small businesses.

Read more: https://www.reuters.com/business/healthcare-pharmaceuticals/us-consumer-watchdog-asks-court-scrap-medical-debt-regulation-2025-05-01/

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This is the "new" anti-consumer DOGEy-infested CFPB crew.

[markie]

1. so very mean spirited

[riversedge]

8. cruelty is Trumps first name!

[LiberalArkie]

2. Of course they do.

[MayReasonRule]

3. Pro Death Policies At Each And Every Turn

There's only one kind of good fascist.

May Darwin serve us well, often and quickly.

[marybourg]

4. Hard to wrap my head around

Last edited Fri May 2, 2025, 09:19 AM - Edit history (1)

The idea that when I see the name of a government agency, they are now always the bad guys.

[William Seger]

5. CONSUMER Financial Protection Bureau "joined two industry groups"?!

Don't they need a name change now?

[marybourg]

6. And they're certainly no longer a "consumer watchdog".

[Silent Type]

7. What we need is universal coverage, not patches that say medical debt needs to be covered up. Congress has failed us

on healthcare.

Except for cosmetic and similar services, there should be no medical debt.

But excluding medical debt from credit reports is just a patch to keep from tackling the real problem.

[NCDem47]

9. Slaves.

Republicans wants Americans to be economic slaves.

Nothing they do is for the good of all. NOTHING.