CFPB medical debt rule overturned
Published by: Sean Brown
July 22, 2025 | Uncategorized
When making lending determinations, putting people first is a trademark of the Credit Union Difference. Knowing the people, families, and businesses in your communities allows you to see opportunities where other lenders see risk. That latitude in decision making was jeopardized by the CFPB’s proposed rule to prohibit creditors from using medical debt information in credit eligibility determinations and consumer reporting agencies from including medical debt in reports to creditors making credit determinations. However, like many of the other CFPB rules from the prior Administration, this proposed rule was caught up in litigation, and just last week overturned as a Texas judge vacated the rule following a successful legal challenge from the Cornerstone League and Consumer Data Industry Association.
While medical debt is rarely a determining factor in credit decisions for many Ohio credit unions, access to accurate debt information remains essential to sound underwriting and risk management. The League will continue to advocate for your credit union’s ability to make lending decisions based on safe and sound practices, protecting both your members and your mission.
Contact Sean Brown for questions or assistance.
