A federal judge in Texas reversed a Biden-era rule on Friday that permitted medical debt to be wiped from credit reports, according to court documents. It’s not enough that they’re taking away our medical care, they’re going to make sure we’re financially ruined as well. Via The Hill:
U.S. District Judge Sean Jordan, a 2019 appointee of President Trump, said the rule by the previous administration exceeds the authority of the Consumer Financial Protection Bureau (CFPB). The CFPB, an independent agency, finalized the rule in January as former President Biden was set to leave the White House.
The Biden administration estimated that the action would remove nearly $50 billion of medical debt from the credit reports of roughly 15 million Americans.
In his decision, Jordan argued that the Fair Credit Reporting Act, which was amended in 2003, does not permit the CFPB to remove medical debt from reports. However, per the filing, the bureau can “permit” or encourage creditors to use other categories of information.
“Excuse us, we’d like you to not hold that against us.” “Why sure, little buddy, all you had to do was ask!”
Since returning to office, Trump has sought to weed out what his Department of Government Efficiency panel calls “waste, fraud and abuse” within the federal government. The embattled consumer protection agency found itself in the president’s crosshairs early on and was subject to mass layoffs.
Dan Smith, head of the Consumer Data Industry Association, welcomed the decision, saying canceling the rule was a move in the right direction.
“This is the right outcome for protecting the integrity of the system,” Smith wrote in a statement, according to Reuters.
