President Donald Trump’s administration is about to ruin a lot of people’s credit.
A new interpretative rule set published Tuesday by the Consumer Financial Protection Bureau will force people to include their medical debt and non-conviction criminals records on their consumer credit reports.
The CFPB had previously issued guidance allowing states to pass laws nixing the inclusion of medical debt, but that rule was revoked in May 2025. The CFPB published the latest interpretive rule to “clarify that the Fair Credit Reporting Act (FCRA) generally preempts State laws that touch on broad areas of credit reporting.”
The new rule could pose serious problems for American consumers, who owe a collective $220 million in medical debt, and could prevent them from securing loans, buying homes, or obtaining lines of credit. The CFPB said that courts ought to overturn rules protecting consumers from including this potentially damaging information from their credit reports, which have been implemented in 15 states, including New York, Maryland, Maine, California, and Colorado.
This latest guidance comes at a difficult time, as health insurance premiums are expected to spike by thousands of dollars a year unless Congress can agree to extend Obamacare subsidies. Should those tax credits expire, the number of Americans drowning in medical bills is likely to increase.
Chi Chi Wu, an attorney at the National Consumer Law Center, told Bloomberg Law that requiring medical debt to appear on credit reports would add “salt to the wound” for consumers already facing a hostile economic environment.
The CFPB is currently being run by Russell Vought, the White House budget director whom Trump previously compared to the Grim Reaper. Earlier this month, Vought said he hopes to “close down” the consumer watchdog soon. Meanwhile, the administration has argued in court that no such plan exists.
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