WASHINGTON, D.C. — Brady Williams, Legal Counsel, issued the following statement in connection with the recently filed motion in Cornerstone Credit Union League et al v. CFPB, No. 4:25-cv-00016 (E.D. Tex.), which asked a federal court to vacate the CFPB’s long-awaited rule addressing medical debt on credit reports:
“The CFPB today sided against consumers by joining the country’s biggest credit reporting companies to toss out the Bureau’s Medical Debt Rule, which would have greatly reduced the harmful impact of medical debt on consumers’ credit scores. Prohibiting alleged medical debts from appearing on credit reports would benefit 15 million people who are unfairly disadvantaged by often inaccurate alleged medical debt on their credit reports, particularly Black, Latino, and low-income communities.
“Research shows that not only do credit reports often report false or inaccurate information about medical debts, but medical debt is also not helpful for credit underwriting, since it is often incurred involuntarily and unexpectedly and is not an accurate reflection of consumers’ ability or willingness to repay debts. Moreover, the fear of damaging credit reports often deters consumers from seeking important medical care in the first place.
“Last August, Better Markets joined a joint comment letter, led by the National Consumer Law Center, from consumer, civil rights, health care, and advocacy organizations supporting the proposed medical debt rule, which the Bureau finalized in January 2025. Although the Bureau once defended the rule from industry legal challenges in federal court, new Bureau leadership has now abandoned the rule and sided instead with the big credit reporting companies that profit off of Americans’ data.
“In a shameful reversal of its position and a betrayal of the agency’s core mission, the CFPB has now teamed up with the very industry it was charged with overseeing. In the absence of this important rule, unverified and often erroneous alleged medical debts will unfortunately continue to impede consumers’ ability to access credit, employment, and even housing.“
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Better Markets is a non-profit, non-partisan, and independent organization founded to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.
