FOR IMMEDIATE RELEASE
July 11, 2025
WASHINGTON, D.C. – Today, Judge Sean Jordan of the Eastern District of Texas entered an order vacating the entirety of the Consumer Finance Protection Bureau’s (CFPB’s) rule titled “Prohibition on Creditors and Consumer Reporting Agencies Concerning Medical Information (Regulation V).” The rule would have prohibited consumer reporting agencies from including on consumer reports, and creditors from considering, medical debt information that is properly coded consistent with the requirements of the Fair Credit Reporting Act (FCRA).
Reacting to the decision, Dan Smith, President and CEO of the Consumer Data Industry Association (CDIA) said, “ We applaud the court’s decision to vacate the prior administration’s medical debt rule, which prohibited including medical debt on credit reports given to creditors, meaning lenders would potentially have had an inaccurate and incomplete picture when making lending decisions.
“The rule exceeded the CFPB’s statutory authority because FCRA explicitly allows Credit Reporting Agencies to report, and creditors to obtain and use, information about medical debt that is properly coded to obscure the name of the provider and the nature of the services provided. The Court also noted that any state attempts to prohibit medical debt on credit reports are preempted by Federal law.
“America’s financial system is the best in the world because it is based on a full, fair and accurate credit reporting system. Information about unpaid medical debts is an important element in assessing a consumer’s ability to pay. This is the right outcome for protecting the integrity of the system. Our member companies remain committed to providing complete and accurate information to support lenders and help consumers access financial products.”
About CDIA: The Consumer Data Industry Association (CDIA) is the voice of the consumer reporting industry, representing consumer reporting agencies, including the nationwide credit bureaus, regional and specialized credit bureaus, background check and residential screening companies, and others. Founded in 1906, CDIA promotes the responsible use of consumer data to help consumers achieve their financial goals and to help businesses, governments, and volunteer organizations avoid fraud.
Contact:
cdia_media@cdiaonline.org
Cynthia Adcock
Cadcock@cdiaonline.org