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

Politics and Government Politics and Government

Thu, January 9, 2025

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

^{Published on 2025-01-08 14:21:02 - MSN}

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.

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 ]

N@N

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