Debt

Redditor’s Daring Strategy: How a Bluff Saved Them from Bankruptcy and Thousands in Debt

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In a story that has captured the attention of many online, a person has shared how they navigated their way out of overwhelming debt without formally declaring bankruptcy. The individual’s post on Reddit’s Unethical Life Pro Tips garnered significant attention, receiving over 7,000 upvotes and sparking discussions around unorthodox financial strategies. Years ago, the individual was inundated with credit card debt and facing relentless collection calls, with some accounts in default for several years. Rather than succumb to the pressure of their financial situation, they chose an unusual approach. They paid a bankruptcy attorney an … Read more

Federal Judge Reverses CFPB’s Medical Debt Exemption, Citing Fair Credit Reporting Act Violations

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A federal judge in the United States has invalidated a rule from the Consumer Financial Protection Bureau (CFPB) that aimed to remove medical debt from credit reports. The ruling drew attention to the limits of the agency’s authority, asserting that the proposal violated the Fair Credit Reporting Act. The CFPB’s initiative was based on extensive research suggesting that medical debt does not reliably indicate an individual’s ability to repay loans. The agency anticipated that the removal of such debts could lead to an average credit score increase of 20 points for millions of consumers, thereby … Read more

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

Landmark Decision: Judge Overturns Biden Administration’s Medical Debt Reporting Regulation

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A federal judge in Chicago has overturned a rule established during the Biden administration that aimed to limit the impact of medical debt on credit reporting. The decision, which has significant implications for consumers, means that debts related to medical expenses could once again influence credit scores, potentially affecting access to loans and housing. The regulation, introduced last year, was designed to provide relief to millions of individuals burdened by medical debt that they may struggle to pay. Advocates argued that medical debts are often unexpected and can arise from emergency situations, emphasizing that these … Read more