U.S. District Judge Sean Jordan, a 2019 appointee of President Trump, reversed the Biden administration’s rule that allowed medical debt to be removed from credit reports, deeming it beyond the Consumer Financial Protection Bureau’s authority.
The big picture: The decision impacts nearly 15 million Americans, estimated to collectively have $50 billion in medical debt removed from their credit reports under the repealed rule.
- Judge Jordan’s ruling contended that the Fair Credit Reporting Act, post its 2003 amendment, does not authorize the CFPB to delete medical debt entries from credit reports but allows for the inclusion of other data categories.
Driving the news: The decision comes following President Trump’s initiatives to curb government inefficiencies and the subsequent reshaping of the CFPB post his return to office.
- The reversal aligns with President Trump’s recent signatures on a substantial spending and tax bill proposing Medicaid cuts, raising concerns about potential adverse effects on health care access.
