U.S. Senator Mike Rounds has introduced a Congressional Review Act resolution aimed at overturning the Consumer Financial Protection Bureau’s (CFPB) Medical Debt Rule. This rule prohibits credit bureaus from including medical debt in credit reports.
“The CFPB going beyond their statutory authority to eliminate all medical debt from credit reports is irresponsible and a clear example of regulatory overreach,” said Rounds. He expressed concerns that this rule could lead to banks limiting access to capital for consumers by providing an unclear credit picture to lenders.
The CFPB’s final rule, issued on January 7, 2025, introduces significant changes regarding medical debt information used for underwriting purposes. It removes a financial information exception for medical accounts and restricts consumer reporting agencies from supplying medical account information when assessing a person’s ability to take on new or existing debt obligations.
Critics argue that the rule exceeds the CFPB’s authority under the Fair Credit Reporting Act (FCRA), which allows consumer reporting agencies to include coded medical debt information in credit determinations. The CFPB’s final rule would ban this practice.
The resolution is cosponsored by Banking Committee Chairman Tim Scott and Senators Mike Crapo, Bill Hagerty, and Cynthia Lummis. “Medical debt is a serious challenge for many Americans, but this rule will do nothing to address the underlying issues,” stated Scott. He emphasized his commitment to working with President Trump and colleagues on solutions that reverse what he describes as damage caused by the Biden administration.
Senator Lummis added her perspective: “President Biden spent the last four years awarding unprecedented levels of power to unelected bureaucrats, and this CFPB rule is another example of Biden’s 11th hour regulatory overreach.”
This legislation has received endorsements from several organizations, including the American Bankers Association and the U.S. Chamber of Commerce.
