💨 Abstract

A federal judge overturned a CFPB rule that aimed to remove unpaid medical bills from U.S. credit reports, deeming it beyond the agency's authority. The rule, finalized under the Biden administration, would have erased approximately $49 billion in medical debts from 15 million individuals' credit reports and restricted lenders from using medical information in loan decisions. The judge agreed with industry associations who argued the rule would compromise credit report accuracy and integrity while increasing financial risks.

Courtesy: WTOP Staff