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