A federal judge ruled that medical debt can continue to appear on Americans' credit reports, countering the Biden administration's effort to alleviate financial burdens from healthcare costs. The ruling, issued by Judge Sean Jordan, was a setback for the Consumer Financial Protection Bureau, which sought to stop medical debt from impacting credit scores. The CFPB previously cited 2014 research indicating medical debt is not a reliable predictor of loan defaults. Advocacy groups criticized the decision as detrimental to millions dealing with medical debt.
Judge Sean Jordan's ruling upheld the inclusion of medical debt on credit reports, thereby reversing a bipartisan effort to alleviate financial pressure from healthcare costs, affecting one-third of Americans.
The CFPB aimed to prevent the negative impact of medical debt on credit scores, asserting that such debts do not accurately predict loan default risks and should not influence financial opportunities.
#medical-debt #credit-reports #biden-administration #consumer-financial-protection-bureau #financial-regulation
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