On May 1, 2025, the ABA Banking Journal reported that the CFPB requested a court to vacate the Regulation V rule prohibiting creditors from considering medical information in credit eligibility determinations. The final rule's original implementation date was March 17, 2025, but was stayed until June 15, 2025, after the rule was challenged in federal court by groups representing credit unions and the credit reporting industry.
In early January 2025, the CFPB issued the final rule amending Regulation V, which implements the FCRA, removing a regulatory exception that had permitted creditors to obtain and use information on medical debts notwithstanding this statutory limitation. The final rule also provided that a consumer reporting agency generally may not furnish to a creditor a consumer report containing information on medical debt that the creditor is prohibited from using.
According to the report, the CFPB acknowledged the rule is unlawful because it exceeds the bureau’s statutory authority. The court has not decided whether to grant the request.
Read the ABA Banking Journal’s article here.