In 2024, the Consumer Financial Protection Bureau (CFPB) finalized a rule that would prohibit credit reporting agencies from including medical debt on consumer credit reports. The goal of the rule was to address the impact that unpaid medical bills—often caused by billing disputes, delayed insurance, or emergency treatment—have on credit scores.

However, as of July 2025, the rule is not in effect. On July 11, 2025, a federal court ruling from the U.S. District Court for the Eastern District of Texas vacated the CFPB’s final rule. The court found that the CFPB exceeded its statutory authority under the Fair Credit Reporting Act (FCRA) by attempting to prohibit the reporting of what the court considered “accurate” credit information, even if that information related to medical debt.

As a result, medical debt remains reportable on credit files under federal law at this time, unless limited by a state-specific regulation.

What the CFPB Rule Intended to Do

The CFPB's rule would have barred consumer reporting agencies from including medical debt in credit reports furnished to lenders or other users. The Bureau cited studies showing that medical debt is not a strong predictor of credit risk and argued that its inclusion may reduce credit accuracy for some consumers. The rule would have impacted approximately $49 billion in medical collections currently appearing on consumer credit files.

The rule followed previous industry changes where the three major credit bureaus—Experian, Equifax, and TransUnion—agreed to remove certain types of medical debt, including debts under $500 and those already paid. The CFPB rule would have gone further by eliminating the reporting of all medical debts, regardless of amount or payment status.

Legal Challenge and Court Decision

The final rule was challenged in court by credit industry trade associations. In July 2025, Judge Sean Jordan ruled that the CFPB had gone beyond its authority in prohibiting the reporting of medical debt entirely. The court vacated the rule, halting implementation.

At this time, the CFPB has not announced whether it will appeal the decision or issue a revised version of the rule.

State-Level Protections Still in Place

Despite the pause at the federal level, at least 14 states have enacted their own laws that prohibit or restrict the reporting of medical debt on consumer credit reports. These include:

• California

• Colorado

• Connecticut

• Illinois

• Maine

• Maryland

• Minnesota

• New Jersey

• New York

• Oregon

• Rhode Island

• Vermont

• Virginia

• Washington

Several other states have implemented delays or restrictions on medical debt reporting. In total, nearly two dozen states have passed or are considering laws to limit the effects of medical debt on credit reports.

What Consumers Can Do Now

For consumers, this means that medical debt may still appear on their credit reports, depending on federal and state laws. If you believe an account has been reported in error, you can dispute the information under the Fair Credit Reporting Act (FCRA). Consumers also have the right to request debt validation from any debt collector under the Fair Debt Collection Practices Act (FDCPA).

State-specific rules may offer additional protections, and consumers are encouraged to review their state’s laws or speak with a qualified attorney.

At The Credit Attorney, we assist individuals in navigating credit reporting and debt collection issues, including disputes involving medical bills. If you have questions about how medical debt may be affecting your credit, contact us to learn more about your options.

Resource Links

1.     AP News – “Judge halts federal rule banning credit reports from including medical debt”: https://apnews.com/article/cfpb-medical-debt-credit-reports-41f212ee6b89f9902deb267d75ab8443

2.     National Consumer Law Center – “Don’t Add Further Insult to Injury: Medical Debt and Credit Reports”: https://www.nclc.org/resources/dont-add-further-insult-to-injury-medical-debt-credit-reports/