From The Hill: A federal judge in Texas reversed a Biden-era rule on Friday that permitted medical debt to be wiped from credit reports, according to court documents.
U.S. District Judge Sean Jordan, a 2019 appointee of President Trump, said the rule by the previous administration exceeds the authority of the Consumer Financial Protection Bureau. The CFPB, an independent agency, finalized the rule in January as former President Biden was set to leave the White House.
The Biden administration estimated that the action would remove nearly $50 billion of medical debt from the credit reports of roughly 15 million Americans.
In his latest decision, Jordan argued that the Fair Credit Reporting Act, which was amended in 2003, does not permit the CFPB to remove medical debt from reports. However, per the filing, the bureau can “permit” or encourage creditors to use other categories of information.
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