Court Vacates CFPB Medical Debt Rule
Posted: Jul 16 2025
A federal court in Texas has vacated the CFPB’s medical debt reporting rule after the bureau’s current leadership joined with plaintiffs in asking it to be struck down.
The rule — issued in the final days of the Biden administration — required reporting agencies to remove medical debt and medical bills from credit reports. It also prohibited lenders from considering medical information when making lending decisions.
The rule was challenged in federal court by groups representing credit unions and the credit reporting industry. The CFPB joined with the plaintiffs in April in asking the court to vacate the rule, with the bureau now arguing the rule exceeds its authority. The court granted the request in a decision.