Overview
- The Consumer Financial Protection Bureau published guidance stating the Fair Credit Reporting Act generally preempts state laws governing broad areas of credit reporting.
- Reporting indicates the policy would override state bans on listing medical debt, affecting laws in 15 states including New York, Maryland, Maine, California, and Colorado.
- The New Republic reports the interpretive rule also contends that certain non‑conviction criminal records can be included on consumer credit reports.
- Consumer advocates warn the change will harm borrowers by worsening credit outcomes for millions with medical bills, and they are preparing legal challenges.
- The publication comes days before ACA open enrollment and possible subsidy expirations, as roughly 100 million Americans carry about $220 billion in medical or dental debt.