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Trump administration moves to overrule state laws protecting credit reports from medical debt

The guidance overturns Biden-era rules and threatens protections in 15 states, impacting 15 million Americans with medical debt on their credit reports, CFPB says.

  • The Trump administration is taking steps to override state laws that protect consumers' credit reports from medical debt and other issues.
  • The Consumer Financial Protection Bureau has drafted an interpretative rule stating that the Fair Credit Reporting Act should preempt state laws regarding debt reporting.
  • This rule reverses previous Biden-era regulations that allowed states to ban medical debt reporting.
  • The CFPB claims that Congress intended for the Fair Credit Reporting Act to create national standards for the credit reporting system.
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Newsweek broke the news in United States on Tuesday, October 28, 2025.
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