Industry groups sue over Biden ban on medical debt from credit reports

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Industry groups sue over Biden ban on medical debt from credit reports

//politics-government.news-articles.net/content/ .. den-ban-on-medical-debt-from-credit-reports.html

Published in Politics and Government on Wednesday, January 8th 2025 at 14:21 GMT by MSN
^{🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source}

Two groups representing the credit reporting and credit union industries have filed a lawsuit challenging a new rule adopted by U.S. President Joe Biden's outgoing administration banning the inclusion of medical debt in American consumers' credit reports.

2025-01-08 195 x 130 / 4005 Bytes

Industry groups, including the Consumer Data Industry Association, have filed a lawsuit against the Biden administration over a new rule that prohibits medical debt from being included on credit reports. This rule, set to be implemented by the Consumer Financial Protection Bureau (CFPB), aims to prevent unpaid medical bills from affecting individuals' credit scores, thereby improving their access to loans and housing. The lawsuit argues that the rule exceeds the CFPB's authority, could lead to increased borrowing costs, and might encourage consumers to neglect their medical debts. The contention is that removing medical debt from credit reports could obscure a full picture of a consumer's financial health, potentially leading to less accurate credit assessments.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/politics/government/industry-groups-sue-over-biden-ban-on-medical-debt-from-credit-reports/ar-AA1xbX45 ]