A federal judge in Texas has reversed a Biden administration rule that wiped medical debt from credit reports, affecting nearly 15 million Americans.
The rule, which did not discharge debt but changed how credit scores could be calculated, would have removed $50 million of medical debt from credit reports.
U.S. District Judge Sean Jordan, who was appointed by President Donald Trump during his first term, argued in his decision that the Fair Credit Reporting Act does not allow the Consumer Financial Protection Bureau (CFPB) to remove medical debt from reports.
It’s about time these cheapskates start paying for their $4,000 aspirin.
I’ve seen ads where there’s a credit card for medical, dental, and veterinary services. It used to be that the hospital would write off the debt but now it’s being financed with revolving credit line.
They’re making it harder to be poor.
The concept of medical debt is ridiculous.
i f someone wants a facelift or other cosmetic surgery why shouldn’t they be allowed to go into debt to get it?
Fucking strawman. No one is talking about elective cosmetic surgery and you knew that.
Doesn’t plastic surgery need upfront payment?
Imagine thinking people are going into debt for that and not ER visits or just things medically necessary insurance decides later isn’t covered.
As with most things, not categorically, but commonly. I had some cosmetic (technically reconstructive might be more accurate, but it was “elective”) surgery a couple of years ago, and I believe I paid like 85% of the bill up front. My recollection is that the remainder was due to some variables in the final cost.
However, that’s not to say it can’t be financed even if due up front. One could certainly use any number of debt-based funding methods to acquire the money, and the surgery provider would have no means of knowing.
Fair, but did those financial methods count as the ones not showing on credit reports?
I also know some insurance will cover stuff like reconstruction or othet cosmetic surgeries but also wouldn’t exactly be what was being filtered from being on credit reports
Dang, imagine if people had the right to be heard by our government the same way corporations do
I’m trying to imagine it, but I’m having a lot of trouble
A federal judge in Texas
Goddammit, I’m gonna go have to look this up again?
EDIT:
U.S. District Judge Sean Jordan, who was appointed by President Donald Trump during his first term
😱
IANAL.
The judge is, mostly, correct from what I can tell. The FCRA explicitly allows the use of this information, as amended from a prior prohibition. He is correct in concluding that a blanket probition isn’t well supported within the statute’s boundaries. He is wrong in suggesting that the CFPB has no regulatory authority over the sharing medical details. The statute obviously semi-implicitly authorizes the CFPB to place some restrictions on how this information is shared, but the judge too-readily rejects these arguments. Not that the defendants made them particularly well, granted.
But… even setting aside the partially erroneous legal finding, it’s moot. Trump’s CFPB joined the plaintiffs in this case, agreeing to roll back the provisions. That the CFPB has the right to do so isn’t in question. Or well, the defendants argued it, but it’s not a good argument. They basically said that because they don’t agree with the change, the Court shouldn’t be allowed to permit it.
Congress needs to fix this, but obviously won’t.
I’m getting so angry at all this, but I have to breathe.
