CFPB Move Would Preempt State Medical Debt Protections | JQJO

The Trump administration is moving to override state consumer protections on credit reporting, with the CFPB drafting an interpretative rule under the Fair Credit Reporting Act to preempt state bans on reporting debt to Experian, Equifax and Trans Union. The move would undo Biden-era measures that let states like New York and Delaware block medical debt reporting, even after the bureaus stopped listing balances under $500 in 2023. Citing Congress’s intent for national standards, the agency advanced the change as Americans hold an estimated $220 billion in medical debt. The CFPB did not immediately comment.