What if a single hospital bill could cost you a home? For 15 million Americans, it’s not hypothetical — it’s reality — and now it’s one the courts have just locked in.
A Trump-appointed federal judge in Texas has struck down a Biden-era rule that would have banned medical debt from credit reports.
The Consumer Financial Protection Bureau argued medical bills are a weak predictor of creditworthiness, yet are often used to deny people car loans, mortgages and jobs.
The now-blocked rule would have removed $49 billion in medical debt and raised credit scores by about 20 points.
Nearly 30% of Black Americans and 22% of Latinos carry medical debt, compared to 17% of white Americans.
The CFPB was created after the 2008 financial crisis to protect consumers. Now, the very agency built to level the playing field is being stripped of its power in one decision.
So again, what if a single emergency room visit keeps you from ever owning a home?
