The Trump administration is set to issue new guidance prohibiting states from removing medical debt from consumers’ credit reports.
Fifteen states, including California, Colorado, and Maine, have passed laws to limit medical debt reporting.
But the Fair Credit Reporting Act, a federal credit reporting law, “generally preempts State laws that touch on broad areas of credit reporting,” the Consumer Financial Protection Bureau (CFPB) said in an interpretative rule set for publication on Tuesday, first reported by The Lever and Bloomberg Law.