Sen. Mike Rounds (R-S.D.) today introduced a resolution to overturn a Consumer Financial Protection Bureau rule removing medical debt and medical bills from credit reports. The rule also prohibits lenders from considering medical information when making lending decisions.
The rule was finalized during the final weeks of the Biden administration. The American Bankers Association and other groups raised numerous concerns about the rule when it was first proposed, saying it would increase credit risk and reduce credit availability for consumers. The Congressional Review Act resolution would overturn the rule if passed by Congress and signed by President Trump.
“The CFPB going beyond their statutory authority to eliminate all medical debt from credit reports is irresponsible and a clear example of regulatory overreach,” Rounds said in a statement. “This rule gives credit card companies a less clear credit picture of who they’re lending money to, which could lead to banks limiting access to capital for consumers. In addition, this rule goes beyond the CFPB’s rulemaking authority by banning practices that were expressly permitted by Congress in the Fair Credit Reporting Act.”
