{"id":2387974,"date":"2025-01-08T15:59:02","date_gmt":"2025-01-08T20:59:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/credit-groups-sue-biden-administration-over-banning-medical-debt-from-credit-scores-washington-examiner\/"},"modified":"2025-01-08T16:01:01","modified_gmt":"2025-01-08T21:01:01","slug":"credit-groups-sue-biden-administration-over-banning-medical-debt-from-credit-scores-washington-examiner","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/credit-groups-sue-biden-administration-over-banning-medical-debt-from-credit-scores-washington-examiner\/","title":{"rendered":"Credit groups sue Biden administration over banning medical debt from credit scores &#8211; Washington Examiner"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">30<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcredit-groups-sue-biden-administration-over-banning-medical-debt-from-credit-scores-washington-examiner%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2387974&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Two credit industry groups \u2063have initiated a lawsuit against the Biden administration \u2064in response to a new federal rule that prohibits including medical debt in credit\u2063 scores. This lawsuit represents the interests of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/u-s-consumer-watchdog-plans-to-regulate-buy-now-pay-later-companies\/\" title=\"U.S. consumer watchdog plans to regulate \u2018buy-now, pay-later\u2019 companies\">credit reporting agencies<\/a> and credit unions, challenging the implications of the rule and its potential impact\u200d on the \u2063credit landscape. The <a href=\"https:\/\/amzn.to\/3YuVZYV\">case raises significant questions<\/a> about the \u200cbalance between <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/proposed-biden-regulation-wont-eliminate-junk-insurance-it-will-promote-it\/\" title=\"Biden&#039;s regulation won&#039;t eradicate &#039;junk&#039; insurance, but rather encourage its growth.\">consumer\u2063 protection<\/a> and the operational concerns of \u2064credit\u200c institutions.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">Credit groups sue Biden administration over banning medical debt from credit scores<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_1929963\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>Two groups, on behalf of <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/credit\/\" target=\"_blank\" rel=\"noopener\" title=\"\">credit<\/a> reporting and credit union industries, have filed a lawsuit against <a href=\"https:\/\/www.washingtonexaminer.com\/news\/white-house\/3279179\/new-federal-rule-eliminate-medical-debt-credit-reports\/\" target=\"_blank\" rel=\"noopener\" title=\"\">a new federal rule<\/a> barring medical debt from appearing on <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/alarming-report-on-americans-released-this-is-a-very-bad-sign\/\" title=\"Bad news for Americans: Alarming report released.\">consumer credit reports<\/a>.&nbsp;<\/p>\n<div class=\"article-paywall\">\n<p>The <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/cfpb\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Consumer Financial Protection Bureau<\/a> finalized a new federal rule Tuesday that would eliminate medical debt from consumer credit reports. Later that day, the Consumer Data Industry Association and Cornerstone Credit Union League filed a lawsuit in federal court in Texas against the regulation.<\/p>\n<p>In the lawsuit, the trade groups say the new rule violates the Fair Credit Reporting Act, a law that outwardly permits consumer reporting agencies to report information about medical debt and authorizes creditors to consider that information.<\/p>\n<p>&ldquo;It is black letter law that an agency cannot prohibit through regulations what Congress has expressly permitted by statute. Because the final rule contravenes the statute, it should be vacated,&rdquo; says the lawsuit.&nbsp;<\/p>\n<p>According to the CFPB, there is an estimated $49 billion in unpaid medical bills from the credit reports of roughly 15 million Americans. The bureau estimated that eliminating medical debt on credit scores could help boost borrowers&rsquo; scores by an average of 20 points.<\/p>\n<p>President Joe Biden&rsquo;s administration <a href=\"https:\/\/www.washingtonexaminer.com\/policy\/finance-and-economy\/3037309\/white-house-announcing-rules-cut-medical-debt-credit-reports\/\" target=\"_blank\" rel=\"noopener\" title=\"\">announced the proposal<\/a> in June 2024. Consumer Financial Protection Bureau Director Rohit Chopra said at the time of the announcement the rule would be an &ldquo;enormous relief&rdquo; for people with medical bills.<\/p>\n<p>&ldquo;No one should be <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/a-new-federal-rule-will-eliminate-medical-debt-from-credit-reports-washington-examiner\/\" title=\"A new federal rule will eliminate medical debt from credit reports - Washington Examiner\">denied economic opportunity<\/a> because they got sick or experienced a medical emergency,&rdquo; Vice President <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/kamala-harris\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Kamala Harris <\/a>said in a statement touting the new rule. &ldquo;This will be life-changing for millions of families, making it easier for them to be approved for a car loan, a home loan or a small-business loan.&rdquo;<\/p>\n<p><a href=\"http:\/\/washingtonexaminer.com\/\" target=\"_blank\" rel=\"noopener\" title=\"\"><strong><\/strong><\/a><\/p>\n<p>Medical debt totals nearly $50 billion nationwide. If the rule stands, the White House <a href=\"https:\/\/www.whitehouse.gov\/briefing-room\/statements-releases\/2025\/01\/07\/fact-sheet-vice-president-harris-announces-final-rule-removing-medical-debt-from-all-credit-reports\/#:~:text=Under%20the%20CFPB%20rule%2C%20there,are%20often%20confusing%20and%20erroneous.\" target=\"_blank\" rel=\"noopener\" title=\"\">said<\/a> there will be&nbsp; &ldquo;zero Americans with medical debt listed on their credit reports,&rdquo; which is down from 46 million in 2020.<\/p>\n<p>The case was assigned to U.S. District Judge Sean Jordan, who was appointed by President-elect Donald Trump during his first term. Trump and his GOP allies have been critical of the CFPB, with co-leader of the unofficial Department of Government Efficiency Elon Musk calling for the agency to be &ldquo;deleted.&rdquo;<\/p>\n<\/div>\n<p> <script data-cfasync=\"false\" src=\"http:\/\/www.washingtonexaminer.com\/cdn-cgi\/scripts\/5c5dd728\/cloudflare-static\/email-decode.min.js\"><\/script><script>!function(){var g=window;g.googletag=g.googletag||{},g.googletag.cmd=g.googletag.cmd||[],g.googletag.cmd.push(function(){g.googletag.pubads().setTargeting(\"has-featured-video\",\"true\")})}();<\/script><script>var _bp=_bp||[];_bp.push({\"div\":\"Brid_1929963\",\"obj\":{\"id\":\"27789\",\"width\":\"1280\",\"height\":\"720\",\"stickyDirection\":\"below\",\"video\":\"1929963\"}});<\/script><script defer src=\"https:\/\/services.brid.tv\/player\/build\/brid.min.js\"><\/script><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Credit groups sue Biden over medical debt credit score ban<\/p>\n","protected":false},"author":2910,"featured_media":2387975,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/01\/medical-debt.webp","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[32502,6178,48165,4585,48073],"class_list":["post-2387974","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner","tag-biden-administration","tag-credit","tag-credit-scores","tag-lawsuit","tag-medical-debt"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/01\/medical-debt.webp","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2387974","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2910"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2387974"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2387974\/revisions"}],"predecessor-version":[{"id":2387979,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2387974\/revisions\/2387979"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2387975"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2387974"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2387974"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2387974"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}