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3d ago

CFPB and Trade Groups Seek Court Approval to Vacate Medical Debt Reporting Rule

The joint motion argues the rule exceeds the CFPB's authority, as consumer advocates prepare to defend the regulation in court.

The seal of the Consumer Financial Protection Bureau (CFPB) is seen at their headquarters in Washington, D.C., U.S., May 14, 2021. REUTERS/Andrew Kelly
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Overview

  • The CFPB, Consumer Data Industry Association, and Cornerstone Credit Union League filed a joint motion to vacate the medical debt rule in a Texas federal court on Wednesday.
  • The rule, finalized in January 2025, would remove $49 billion in medical debt from credit reports, benefiting 15 million Americans, but remains stayed pending a court decision.
  • The CFPB and trade groups argue the rule exceeds the bureau’s statutory authority under the Fair Credit Reporting Act and the Administrative Procedure Act.
  • Consumer advocacy groups, including Tzedek DC and the New Mexico Center on Law and Poverty, have moved to intervene in defense of the rule, with supplemental briefs due by May 7.
  • A separate Congressional Review Act resolution to nullify the rule, filed by Sen. Mike Rounds in March, could block similar future regulations if passed.