A federal judge in Texas reversed Biden-era rules According to court documents, medical loans were erased from a credit report on Friday.
For the appointment of President Trump’s 2019, US District Judge Sean Jordan said that the previous administration governance More than authority Consumer Financial Protection Bureau. CFPB, an independent agency, The rule finalized in January As former President Biden was ready to leave the White House.
The Biden administration estimated that the action would remove the medical loan of about 50 billion dollars from the credit report of about 15 million Americans.
In its latest decision, Jordan argued that the Fair Credit Reporting Act, which was amended in 2003, does not allow CFPB Remove medical loan From the report. However, according to the filing, the bureau may “permit” or encourage creditors to use other categories of information.
Since returning to office later that month, Trump is near Demand for weed What is his Government efficiency department (DOGE) panel calls waste, fraud and abuse within the federal government. Embossed consumer protection agency found itself President’s crosshare early And was Under -scale trimmed,
In March, a federal judge Trump administration blocked By defying CFPB effectively.
While in office, former Vice President Harris was also a supporter of eradicating medical loan and it became Part of his message During the 2024 presidential election. When laying his proposed economic agenda, he Also swear To take Biden’s health care achievements even further – including completely eradicating the debt.
Harris said in January, “No one should be denied economic opportunity as they had become ill or experienced a medical emergency,” later, “we also reduced the burden of medical debt and extended the route to break the waiver and hunter loan collection strategy.”
Dan Smith, head of the Consumer Data Industry Association, welcomed the verdict, saying that the cancellation of the rule was a step in the right direction.
Smith wrote in a statement, “This is the correct result for protecting the integrity of the system.” Roots,
Jordan’s decision comes about a week after Trump Put signature on Large -scale spent and tax bills include Sweeping cut to medicidNew Work requirements Millions of involved in the law can take away their coverage.
