Overview

• Judge Sean Jordan determined on July 11 that the CFPB exceeded its authority under the Fair Credit Reporting Act by adopting the medical debt rule.
• The vacated policy would have removed roughly $49 billion of unpaid medical bills from the credit files of an estimated 15 million Americans.
• Under new leadership at the bureau, the CFPB declined to defend the rule and has not appealed the court’s decision.
• Industry associations and Republican lawmakers had challenged the measure as an overreach that would undermine the accuracy and completeness of consumer credit data.
• Stakeholders are now awaiting potential congressional legislation or voluntary credit bureau changes to address the reporting of medical debt.