May 01, 2025 2 min read

CFA Statement on CFPB Collusion to Vacate Medical Debt Rule

PR

WASHINGTON, D.C. – The Consumer Federation of America released the following statement in response to the filing by Consumer Financial Protection Bureau (CFPB) Acting Director Russ Vought’s request to the United District Court for the Eastern District of Texas to collude with a party suing the agency to get a court to vacate the medical debt on credit reports rule.

“Getting sick should never threaten a person’s financial stability, disqualify them from housing, or undermine their ability to find employment,” said Adam Rust, director of financial services for the Consumer Federation of America. “If they succeed in walking away from the rule, the CFPB will destabilize the financial security of the 15 million Americans with $49 billion in medical debt in collections and tilt the economy in favor of debt collectors and insurance companies. There is a price for this extremism, and if this rule is canceled, the costs will be paid by the struggling families who could face a hard choice between preserving their credit score or seeking health care.”

“Trump's henchmen at the CFPB are blowing through legal requirements to try to saddle Americans' credit with medical bills that are often unexpected, unavoidable, and even grossly inaccurate," said Brad Lipton, Senior Fellow at the Consumer Federation of America. "It's another repulsive example of this administration siding with corporations and lobbyists over working people. Under the law, federal agencies are required to undergo a rulemaking process to remove regulations -- not collude with litigants."

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