Trump administration moves to overrule state laws protecting credit reports from medical debt
Source: AP
Updated 6:13 PM EDT, October 28, 2025
NEW YORK (AP) — The Trump administration is moving to overrule any state laws that may protect consumers’ credit reports from medical debt and other debt issues.
The Consumer Financial Protection Bureau has drafted what’s known as an interpretative rule related to the Fair Credit Reporting Act, interpreting the law in a way that says the FCRA should preempt any state laws or regulations when it comes to how debt should be reported to the credit bureaus like Experian, Equifax and Trans Union.
This repeals previous Biden-era rules and regulations that allowed states to implement their own credit reporting bans. More than a dozen states like New York and Delaware prohibit the reporting of medical debt on a consumers’ credit report. Medical debt is often the most disputed part of a consumer’s credit report, because insurance payments can take time, and oftentimes patients do not have the means to fully pay a medical bill if insurance is not covering a procedure that has already taken place.
The three credit bureaus jointly announced in 2023 they would no longer track any medical debts below $500, which at the time the bureaus said would eliminate 70% of all medical debts reported on consumers’ credit files. But some states have gone further than that. New York, Delaware and others passed laws where medical debts can no longer be reported to the credit bureaus.
Read more: https://apnews.com/article/medical-debt-cfpb-fcra-equifax-experian-trans-union-fdb5ad61e4ca0f18943045d314dd7b3b
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