Federal judge reverses rule that would have removed medical debt from credit reports
U.S. District Court Judge Sean Jordan of Texas's Eastern District, who was appointed by Trump, found on Friday that the rule exceeded the CFPB 's authority.
Jordan said that the CFPB is not permitted to remove medical debt from credit reports according to the Fair Credit Reporting Act, which protects information collected by consumer reporting agencies.
Advertisement
U.S. District Court Judge Sean Jordan eliminated a rule enforced by the Biden administration from the Consumer Financial Protection Bureau that would have gotten rid of medical debt from credit reports.
DC Studio – stock.adobe.com
Removing medical debts from consumer credit reports was expected to increase the credit scores of millions of families by an average of 20 points, the bureau said.
The CFPB states that its research has shown outstanding healthcare claims to be a poor predictor of an individual's ability to repay a loan, yet they are often used to deny mortgage applications.
Advertisement
The three national credit reporting agencies — Experian, Equifax, and TransUnion — announced last year that they would remove medical collections under $500 from U.S. consumer credit reports.
The CFPB's rule was projected to ban all outstanding medical bills from appearing on credit reports and prohibit lenders from using the information.
The Trump-appointed judge said the CFPB can't get rid of medical debt from credit reports as part of the Fair Credit Reporting Act.
AP
The CFPB estimated the rule would have removed $49 million in medical debt from the credit reports of 15 million Americans.
Advertisement
According to the agency, one in five Americans has at least one medical debt collection account on their credit reports, and over half of the collection entries on credit reports are for medical debts.
The problem disproportionately affects people of color, the CFPB has found: 28% of Black people and 22% of Latino people in the U.S. carry medical debt versus 17% of white people.
The CFPB was established by Congress after the 2008 financial crisis to monitor credit card companies, mortgage providers, debt collectors and other segments of the consumer finance industry.
Earlier this year, the Trump administration requested that the agency halt nearly all its operations, effectively shutting it down.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
11 minutes ago
- Yahoo
US tariffs and weak dollar threaten Italian exports, says industry chief
By Giulia Segreti ROME (Reuters) -The only acceptable tariff on European Union exports to the United States would be zero as the bloc is already facing a detrimental exchange rate, the head of Italy's business lobby said on Wednesday. "The real issue is that, to date, not only do we have to consider the burden of tariffs, but we must add to that the euro's appreciation against the dollar," said Confindustria President Emanuele Orsini. The euro has risen by more than 12% against the dollar since the start of the year. Orsini said the dollar's devaluation against the euro "is the biggest in the world" and that Confindustria's projections indicate that it would increase in the coming months, to reach up to 20%. "Any tariff level on top of that is out of control," since the cheaper dollar represents the "highest tariff that (Europe) already faces... making us lame from the start", Orsini said at a conference in Rome. U.S. President Donald Trump on Saturday threatened to impose a 30% tariff on imports from Mexico and the European Union starting on August 1, a level European officials say is unacceptable and would end normal trade between two of the world's largest markets. According to Confindustria, each percentage point of tariffs imposed by the U.S. would translate into a loss of Italian exports worth 874 million euros ($1 billion). The association did not specify over what amount of time. With 30% tariffs, Italy would lose 37.5 billion euros in exports, Orsini said, factoring in the exchange rate impact. Earlier this month he had already warned that tariffs of 10% would have been unsustainable for the Italian economy. Orsini added that Trump's final goal was to "relocate Europe's major companies to the United States" and called on the European Union to set out a plan to hold on to its businesses. ($1 = 0.8608 euros)
USA Today
12 minutes ago
- USA Today
Broadcasting services squeezed
Good morning!🙋🏼♀️ I'm Nicole Fallert. I'm SAT for "The Summer I Turned Pretty" Season 3. Rural TV and radio stations face public media cuts Senate Majority Leader John Thune said he expects the final decision on billions of dollars in spending cuts likely late Wednesday or early tomorrow. The proposal slashes about $9 billion in federal funding for the Corporation for Public Broadcasting, which funds NPR and PBS, and foreign aid agencies including the World Health Organization and U.S. Agency for International Development. President Donald Trump's May 1 executive order called for the Corporation of Public Broadcasting to 'cease direct funding" to NPR and PBS. But some in the GOP worry about the impacts on rural areas. Is the 'tariff shock' finally here? In recent months, critics of President Donald Trump's tariff campaign have braced for an unwelcome rise in the inflation rate. That moment may have arrived. Prices rose 2.7% in the 12 months through June, the Labor Department announced July 15. It's the highest annual inflation rate since February and a sign that Trump's import taxes may be finally raising consumer prices, as many forecasters predicted. More news to know now What's the weather today? Check your local forecast here. Detainees go to new lengths to raise funds to cover legal fees In a photo on a former model from Colombia smiles under a white visor as she sunbathes in South Florida. But the image is far from her current reality: She's locked up in an ICE detention center in Louisiana. The cost of deportation defense can run into the thousands of dollars, and this woman is among a growing number of immigrant families that are using online fundraising to make ends meet. A USA TODAY analysis of fundraising efforts of one of the nation's largest crowdsourcing sites, found dozens of campaigns that have raised more than $1.8 million since President Trump took office, the majority in the past two months. "The Blonde that Shouldn't Get Deported" spoke with USA TODAY via video call from the ICE facility where she is detained. More rain, flooding expected in parts of New Jersey Cities across the Northeast and Mid-Atlantic were inundated by heavy rainfall that swamped roads, knocked out power and prompted water rescues this week. Video posted to social media showed a New York City subway station inundated with fast-moving floodwaters as passengers watched from inside a train, lifting their feet to avoid the water rushing into the subway car. In McLean, Virginia, just outside Washington, videos showed cars stuck in floodwaters. In New Jersey, two people were killed in flash flooding. Authorities issued a flood watch Wednesday for portions of central, northern and northwest New Jersey through late tonight. Today's talkers The Emmy nominations are here. Who got snubbed? While plenty of stars were celebrating after the 2025 Emmy nominations were announced Tuesday, there were inevitably some deserving and celebrated actors and TV shows left out from the list of nominees. While Martin Short gets to check off his yearly nod for Hulu's "Only Murders in the Building," his costars Steve Martin and Selena Gomez didn't have the same luck. And "Paradise," Hulu's post-apocalyptic thriller starring Sterling K. Brown and James Marsden, surprised with major drama category nods, likely pushing out previous nominees including "Yellowjackets," "Squid Game" and "The Handmaid's Tale." Here are the most jaw-dropping stars and TV shows to miss out on nominations for the 77th Primetime Emmy Awards. Photo of the day: National League reaches for the win After finishing nine innings all tied up, the Major League Baseball All-Star Game Tuesday night was decided by a swing-off for the first time, with the National League emerging victorious after blowing a six-run lead over the final three innings. Nicole Fallert is a newsletter writer at USA TODAY, sign up for the email here. Want to send Nicole a note? Shoot her an email at NFallert@
Axios
12 minutes ago
- Axios
What to know about Miami's "Good Trouble Lives On" protests
Tens of thousands of people are expected to protest the Trump administration again on Thursday, the fifth anniversary of the death of civil rights leader and former congressman John Lewis. Why it matters: Lewis was one of the most vocal critics of President Trump during his first administration. Trump's 2017 inauguration was the first that Lewis missed during his three-decade tenure in Congress. By the numbers: 56,000 people RSVP'd for more than 1,500 events across the country as of Friday, organizers said. Zoom in: In Miami, one rally will be at The Roots Bookstore & Market from 4pm-8:30pm, while the second is planned for 5pm-7pm at Florida International University Green Library. A third rally in Davie will be from 4:30pm-6pm at the entrance to Nova Southeastern University. What they're saying: "Good Trouble Lives On is a national day of action to respond to the attacks on our civil and human rights by the Trump administration," the protest website said. "Together, we'll remind them that in America, the power lies with the people." The other side: "Nearly 80 million Americans gave President Trump a historic mandate to Make America Great Again and he is delivering on that promise in record time," White House spokesperson Liz Huston said in a statement. Context: Lewis, the son of sharecroppers, grew up in rural Alabama. The civil rights leader was arrested more than 40 times and injured repeatedly but remained an advocate for nonviolent protest, per the Library of Congress. "Rosa Parks inspired us to get in trouble," he said in 2019. "And I've been getting in trouble ever since. She inspired us to find a way, to get in the way, to get in what I call good trouble, necessary trouble."
