Republican lawmakers are using the Congressional Review Act (CRA) to try to overturn a Biden-era Consumer Financial Protection Bureau rule that prohibits medical debt from being included on consumer credit reports. The resolution, introduced by Sen. Mike Rounds [R-S.D.] and Rep. Ralph Norman [R-S.C.], would nullify the rule before it takes effect.
Why it matters: The CFPB’s rule, finalized in January 2025, aims to remove medical debt from credit reports, potentially improving the credit scores of millions of Americans. If the repeal effort succeeds, creditors and consumer reporting agencies will continue to factor medical debt into lending decisions.
Driving the news:
- The resolutions (S. J. Res. 36 in the Senate and H. J. Res. 74 in the House) invoke the Congressional Review Act, which allows Congress to overturn recent federal rules with a simple majority vote in both chambers and the president’s signature.
- Senate Banking Committee Chairman Tim Scott [R-S.C.] is among the cosponsors of the disapproval resolution.
- The CFPB estimated that more than 15 million Americans have medical debt totaling around $49 billion on their credit reports.
- The rule was originally set to take effect on March 17, but was delayed by a federal court order in response to a lawsuit from the Consumer Data Industry Association.
What they’re saying:
- Sen. Rounds: “The CFPB going beyond their statutory authority to eliminate all medical debt from credit reports is irresponsible and a clear example of regulatory overreach.”
- Chi Chi Wu, National Consumer Law Center: “Being sick and having medical bills has little to do with whether people will pay their loan payments… These members of Congress callously think it’s their job to allow medical debts to shut these folks out from access to credit.”
- Sen. Tim Scott: “Medical debt is a serious challenge, but this rule will do nothing to address the underlying issues. Instead, it will reduce access to credit and important healthcare services.”
Zoom in:
- Legal challenge: A federal judge in Texas has paused the rule’s implementation until June 15, unless Congress or the courts overturn it first.
- Industry response: Organizations such as the American Bankers Association, the U.S. Chamber of Commerce, ACA International, and the Receivables Management Association International have endorsed the resolution to repeal the rule.
- Historical context: The medical debt rule is one of several CFPB regulations targeted for repeal in the 119th Congress. Other ongoing CRA resolutions include efforts to overturn a CFPB rule on digital payment platforms and a $5 overdraft fee cap.
What’s next:
- Lawmakers have until May 7 to use the CRA’s fast-track process to repeal the rule.
- If Congress votes to overturn it and President Trump signs the resolution, the CFPB’s medical debt rule will be permanently voided.
- If the repeal fails, the rule will take effect following the court-imposed delay unless further legal action halts it.
