A federal judge in Texas removed a Biden-era finalized ruled by the Consumer Financial Protection Bureau 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.
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