• Latest
  • Trending
  • All
  • News
  • Business
  • Lifestyle
Lame Duck Biden Admin Issues Rule Hiding Nearly $50 Billion In Debt From Credit Card Reports

Lame Duck Biden Admin Issues Rule Hiding Nearly $50 Billion In Debt From Credit Card Reports

January 7, 2025
Democrat Congresswoman Charged With Assaulting Law Enforcement In Stunt At ICE Center

Democrat Congresswoman Charged With Assaulting Law Enforcement In Stunt At ICE Center

May 19, 2025
Steve Moore Explains Why Problems With GOP Spending Bill ‘Not A Hard Fix’

Steve Moore Explains Why Problems With GOP Spending Bill ‘Not A Hard Fix’

May 19, 2025
EXCLUSIVE: Trump HHS Yanks $60,000,000 In Federal Funding From Harvard

EXCLUSIVE: Trump HHS Yanks $60,000,000 In Federal Funding From Harvard

May 19, 2025
Democrat Congresswoman Charged For Assaulting Law Enforcement In Stunt At ICE Center

Democrat Congresswoman Charged For Assaulting Law Enforcement In Stunt At ICE Center

May 19, 2025
Trump Rolls The Dice On Syria

Trump Rolls The Dice On Syria

May 19, 2025
‘Betrayed Us’: Dems’ Antisemitism Problem Could Help GOP Pick Up Heavily Jewish NY Seat

‘Betrayed Us’: Dems’ Antisemitism Problem Could Help GOP Pick Up Heavily Jewish NY Seat

May 19, 2025
Trump Admin to Pay Almost $5 Million for Shooting of Ashli Babbit

Trump Admin to Pay Almost $5 Million for Shooting of Ashli Babbit

May 19, 2025
Activists Target Red State Pro-Life Centers, College Students With Abortion Tourism Ads

Activists Target Red State Pro-Life Centers, College Students With Abortion Tourism Ads

May 19, 2025
Faculty At Major University Vow To ‘Resist’ Trump’s ICE, Declare ‘Sanctuary Union’

Faculty At Major University Vow To ‘Resist’ Trump’s ICE, Declare ‘Sanctuary Union’

May 19, 2025
James Comey Attempts To Shift Blame Onto Trump Admin For ‘Distraction’ Surrounding Alleged Assassination Post

James Comey Attempts To Shift Blame Onto Trump Admin For ‘Distraction’ Surrounding Alleged Assassination Post

May 19, 2025
‘Sickening’: DHS Spox Calls Out Tim Walz For ‘Vilifying’ ICE Agents

‘Sickening’: DHS Spox Calls Out Tim Walz For ‘Vilifying’ ICE Agents

May 19, 2025
EXCLUSIVE: GOP Rep Introduces Bill To Protect US Infrastructure From Chinese Threats

EXCLUSIVE: GOP Rep Introduces Bill To Protect US Infrastructure From Chinese Threats

May 19, 2025
  • Donald Trump
  • State of the Union
  • Elon Musk
  • Tariffs
  • Congress
  • Faith
  • Immigration
Monday, May 19, 2025
  • Login
IJR
  • Politics
  • US News
  • Commentary
  • World News
  • Faith
  • Latest Polls
No Result
View All Result
IJR
No Result
View All Result
Home News

Lame Duck Biden Admin Issues Rule Hiding Nearly $50 Billion In Debt From Credit Card Reports

by Daily Caller News Foundation
January 7, 2025 at 10:41 am
in News, Wire
235 17
0
Lame Duck Biden Admin Issues Rule Hiding Nearly $50 Billion In Debt From Credit Card Reports
491
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter

Daily Caller News Foundation

The lame duck Biden administration’s Consumer Financial Protection Bureau (CFPB) issued a new rule Tuesday that will hide an estimated $49 billion in medical debt from credit reports.

The rule, which is slated to affect 15 million Americans, prohibits the inclusion of medical bills on credit reports and bars creditors from using medical information in making lending decisions. The policy specifically targets national credit-reporting companies Equifax, Experian and Transunion, which provide detailed evaluations of consumer finances to banks, employers and landlords.

“People who get sick shouldn’t have their financial future upended,” CFPB Director Rohit Chopra said in a press release announcing the finalized rule. “The CFPB’s final rule will close a special carveout that has allowed debt collectors to abuse the credit reporting system to coerce people into paying medical bills they may not even owe.”

In the rule announcement, the CFPB cites its own research claiming medical debt is a poor predictor of a person’s likelihood to repay a loan. However, a 2019 study from the National Institutes of Health cited by Chopra in May 2023 found 66.5 percent of all personal bankruptcies were tied to medical bills.

Equifax requested the CFPB withdraw the rule in August after it was proposed in June, arguing the CFPB failed to prove medical debts are inaccurately reported, and thus that banning the use of medical history in lending decisions is “not permitted” under federal law: “This arbitrary and capricious finding … (I) fails to consider Congress’s intent to authorize the reporting of medical debt information; (II) does not include a meaningful cost-benefit analysis; (III) does not offer substantial evidence to support its assertion that medical debt information is less predictive; (IV) does not provide substantial evidence that medical debt information is inaccurate; and (V) improperly distinguishes between medical debt owed to healthcare providers (or their agents or assignees) and medical debt owed to credit card issuers.”

Debt collector lobby ACA International also panned the CFPB policy, saying it barred collectors from recovering “rightfully owed consumer debt,” that allows lenders “to survive.”

The CFPB was created in the wake of the 2008 Great Financial Crisis and is considered the brainchild of Democratic Massachusetts Sen. Elizabeth Warren. Chopra, the agency’s current director, worked closely with Warren to establish the agency in 2011.

The medical debt rule comes just weeks after the CFPB issued a rule in December to curb overdraft penalties by forcing banks to either cap overdraft fees at $5, far less than the $35 average, or to provide the overdraft as a form of credit rather than a penalty. Experts previously described the overdraft rule to the DCNF as “a classic case of government overreach” that courts will “likely conclude” is not legal following the Supreme Court’s 6-3 June vote overturning Chevron deference — a legal theory that provided unelected bureaucrats with significant leeway to interpret statutory ambiguities.

The CFPB did not immediately respond to a request for comment.

All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.

Tags: DCNFU.S. NewsUS
Share196Tweet123
Daily Caller News Foundation

Daily Caller News Foundation

Advertisements

Top Stories June 10th
Top Stories June 7th
Top Stories June 6th
Top Stories June 3rd
Top Stories May 30th
Top Stories May 29th
Top Stories May 24th
Top Stories May 23rd
Top Stories May 21st
Top Stories May 17th

Join Over 6M Subscribers

We’re organizing an online community to elevate trusted voices on all sides so that you can be fully informed.





IJR

    Copyright © 2024 IJR

Trusted Voices On All Sides

  • About Us
  • GDPR Privacy Policy
  • Terms of Service
  • Editorial Standards & Corrections Policy
  • Subscribe to IJR

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Politics
  • US News
  • Commentary
  • World News
  • Faith
  • Latest Polls

    Copyright © 2024 IJR

Top Stories June 10th Top Stories June 7th Top Stories June 6th Top Stories June 3rd Top Stories May 30th Top Stories May 29th Top Stories May 24th Top Stories May 23rd Top Stories May 21st Top Stories May 17th