Credit

Federal Judge Overturns Biden-Era Medical Debt Relief Rule, Impacting Millions of Americans’ Credit Scores

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AUSTIN, Texas — A federal judge has overturned a ruling by the Biden administration designed to alleviate medical debt for nearly 15 million Americans by modifying how it impacts credit scores. The decision, made by U.S. District Judge Sean Jordan, highlights ongoing debates over financial regulations and consumer protection. The administration’s initiative aimed to eliminate approximately $50 million in medical debt from credit reports. Though it did not cancel existing debt, the rule proposed new ways to compute credit scores, potentially benefiting many consumers. Implemented by the Consumer Financial Protection Bureau (CFPB) in January, the … Read more

Breaking the Stigma: How Austin Bankruptcy Lawyers Empower Clients to Rebuild Credit Post-Bankruptcy

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Austin, Texas — Many residents are apprehensive about filing for bankruptcy due to concerns over its potential impact on their credit scores. However, local experts assert that bankruptcy can serve as a crucial first step toward financial recovery rather than a permanent setback. The team at Austin Bankruptcy Lawyers focuses on assisting individuals grappling with debt, offering personalized guidance aimed at fostering a more secure financial future. Filing for bankruptcy, whether Chapter 7 or Chapter 13, often leads to an immediate decline in credit scores. Still, many individuals facing financial challenges may already have low … Read more

Federal Court Pauses Lawsuit Against CFPB as Negotiations Over Credit Card Late Fee Cap Show Promise

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FORT WORTH, Texas — A federal court has temporarily paused legal proceedings in a high-stakes lawsuit over a contentious rule limiting credit card late fees, an issue that pits financial institutions against consumer advocates. The 30-day stay, authorized by U.S. District Court Judge Mark Pittman on March 13, followed optimistic signals from the Consumer Financial Protection Bureau (CFPB) about reaching a settlement with challengers, including the U.S. Chamber of Commerce and the Consumer Bankers Association. The dispute centers on a CFPB rule established in March 2024, capping credit card late fees at $8, a sharp … Read more

Illinois Judge Refuses to Block Law Limiting Credit Card Swipe Fees on Tips and Taxes, Banking Groups Vow to Fight On

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SPRINGFIELD, Ill. – In a significant legal ruling, a federal judge on Thursday refrained from halting an Illinois law designed to limit certain charges by credit card companies, which is set to alter transaction fee structures statewide. These companies typically impose “swipe fees” on merchants for processing credit and debit card payments. Last spring, the Illinois Legislature enacted the Interchange Fee Prohibition Act, a pioneering law that prohibits these fees on the taxation and gratuity portions of credit and debit card transactions, effective from July 1. This legislative move, part of the state’s budget resolution, … Read more