Overview
- California Attorney General Rob Bonta issued a consumer alert saying state law still prohibits medical debt on credit reports despite the CFPB’s new interpretation.
- A national debt collection trade group and a member filed a federal lawsuit on Nov. 5 challenging Colorado’s 2023 law that bars reporting adverse medical debt and limits related collection communications.
- The CFPB under Director Russell T. Vought released interpretive guidance asserting the Fair Credit Reporting Act preempts state medical-debt reporting bans.
- Colorado Attorney General Phil Weiser criticized the federal shift, defending the state’s statute and warning of harms from including medical bills in credit files.
- Industry organizations including the Consumer Data Industry Association back a single national standard, and legal analysts expect additional challenges to state bans.