Defending the Medical Debt Rule

A rule issued by the Consumer Financial Protection Bureau (CFPB) in early January 2025 banned inclusion of medical bills on credit reports used by lenders and prohibiting lenders from using medical information in their lending decisions.  The agency removed a regulatory exception that had permitted creditors to obtain and use information on medical debts. The final rule also provided that a consumer reporting agency may not furnish a creditor with a consumer report containing information on medical debt that the creditor is prohibited from using. This change removed an estimated $49 billion in medical bills from the credit reports of about 15 million Americans, increased privacy protections, and prevented debt collectors from using the credit reporting system to coerce people to pay bills. ACS CAN strongly supported the rule as people with cancer often have significant health care costs because they have high medical needs, require service from many different medical practitioners, and sometimes need more expensive treatments.

Credit agencies filed two different lawsuits in Texas to overturn the rule. Cornerstone Credit Union League v. CAPB and ACA International v. CAPB both allege that the agency has exceeded its authority in violation of the Fair Credit Reporting Act. The agency stopped defending the rule in courts, but the National Consumer Law Center (NCLC) and some partners were granted intervenor status to defend the rule. 

ACS CAN joined an amicus brief in the Cornerstone case defending the rule. Unfortunately, in July of 2025, a court vacated the rule in its entirety,  and the decision was not appealed.