Federal Judge Reverses Biden-Era Rule That Barred Medical Debt From Credit Reports

A federal judge in Texas has struck down a Biden-era rule that would have barred medical debt from appearing on credit reports.

In a July 11 order, District Judge Sean Jordan of the U.S. District Court for the Eastern District of Texas found that the Consumer Financial Protection Bureau (CFPB) overstepped its authority when it finalized the rule in January, two weeks before President Donald Trump was sworn in for a second term.

Under the Fair Credit Reporting Act, credit reporting agencies are allowed to include medical debt information in credit reports, provided the data is coded to conceal details such as the medical provider’s identity or the nature of the treatment. Creditors are permitted to consider this coded medical debt information when making lending decisions.