Congress votes to let lenders use medical debt against you
H.J.Res. 74 — Disapproving the rule submitted by the Bureau of Consumer Financial Protection relating to "Prohibition on Creditors and Consumer Reporting Agencies Concerning Medical Information (Regulation V)". · Filed by Ralph Norman (R-SC) · 13 cosponsors · Introduced Mar 6, 2025 · Referred to committee
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What it does
This resolution disapproves a CFPB rule that prohibited creditors and credit reporting agencies from using medical debt information in lending and credit decisions. The disapproval means the prohibition is voided, allowing creditors and credit bureaus to resume considering medical debt when evaluating creditworthiness and setting interest rates.
Why we flagged it
The bill's operative mechanism is a Congressional Review Act disapproval that voids a CFPB consumer protection rule. Although framed as a disapproval, the effect is deregulation—permitting creditors and credit bureaus to resume using medical information in lending decisions.
What the text implies
- Medical debt will now be factored into credit scores and lending decisions, potentially raising borrowing costs for people with serious illnesses or medical emergencies.
- Credit reporting agencies may begin collecting and selling medical debt information as a data product, creating a new revenue stream from health crises.
The full analysis lists 4 implications of this text.
Who stands to gain
credit reporting agencies; creditors and lenders; debt collection firms