Remember the federal regulations enacted during the Biden era to keep medical debt off your credit report? The Trump administration, which is apparently more interested in keeping people in debt, because its friends make money off people being in debt, is telling states that they can’t do their own debt-protection laws.
“Congress meant to occupy the field of consumer reporting and displace state laws,” the Consumer Financial Protection Bureau concluded in an interpretive rule signed by Russell Vought, the White House budget director and acting head of the CFPB.
The new rule signed by Vought offers a new interpretation of the Fair Credit Reporting Act, and reverses policies advanced under former Biden that allowed states to expand protections for people with medical debt.
The new interpretation will affect 15 million people in states including Virginia, Maryland, New York, most of New England and the Left Coast that have enacted laws to keep medical debt from affecting your credit.
More than 100 million people nationally have at least some medical debt, with millions having $10,000 or more in unpaid medical bills.
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Chris Graham
