📋 Judge Rules Medical Bills Will Stay on Credit Reports (AARP Article)

[Winter2025VA]

FROM THE ARTICLE.

Medical Bills to Remain on Credit Reports.

Federal judge overturns rule that would have helped millions of Americans.

By Maya Dollarhide and Daniel Bortz, AARP. Published July 15, 2025.

Unpaid medical bills will continue to hurt Americans’ credit scores after a federal judge in Texas struck down a Consumer Financial Protection Bureau rule on July 11, 2025, designed to remove medical debt from credit reports.

The CFPB rule would have aided an estimated 15 million Americans currently carrying upward of $49 billion in medical debt on their credit reports. In addition, the rule would have prohibited medical devices, such as wheelchairs, from being used as collateral on loans and allowed for some medical information to be shielded from loan applications.

USE LINK BELOW TO READ THE ARTICLE.

https://www.aarp.org/money/personal-finance/medical-debt-credit-report.html

[Winter2025VA]

Well personally I AVOID loans as I AGE = my health is more important at age 67.

Paid CASH for my car. The days of Car Loans are gone for me. Debt free.

Take care,

Nicole (Friends & Family Forum)

[GailL1]

The article is not talking about a general loan or a credit card debt - the article is talking about a medical debt that is held by a hospital or a provider which was not paid by the beneficiary.  

I never really understood how a medical debt could be kept off of a credit report especially once collection action had been taken.

The responsibility of the beneficiary is to make certain the amount is correct and then pay it as soon as they can - it is a debt.

[Winter2025VA]

@GailL1 , IF your "response" was to me [I was not tagged], I maybe old at age 67 but know what the article was stating.

So let me go into "details" just for you.

When I stated I no longer do loans in my old age - unless this has changed, a medical debt would "affect" my ability to get one. Any debt will "affect" your Credit History.

[GailL1]

My response was just in general but you validate my point.  IF a medical debt is HIDDEN  from reporting on one’s credit report, as the CFPB / Biden rule said, it would NOT affect anyone’s ability to get a loan or credit card or mortgage - leading the way for one to possibly get further into debt without the lender being able to know about the  [medical] debt.

Like I said, I never understood the purpose or the reason for the CFPB / Biden rule.  Debt is debt and needs to be on one’s credit report.

[Winter2025VA]

@GailL1 , I agree!!! We are losing way too many Medical Staff here in Virginia (my area). Hiding what is OWED to the ones still in the "medical field" would only hasten their EXIT. Lol, so glad I am old and on my out as I cringe at my daughter's options for FUTURE healthcare. Gone are the days folks wanted to be doctors. Take care, Nicole!

[GailL1]

That does bring up an ethical question.  Should a doctor be able to pull a credit report on a patient since in essence, they are extending some form of credit to the patient - you get the service before they are paid most times.  

And since we know , insurance does not cover the whole cost - and the patient may own something.  A copay, a deductible, some co-insurance.   

[Winter2025VA]

@GailL1 , I was NOT suggesting doctors pull Credit Reports. All I said is that they need to be paid IF they are going to stay in business. They have bills like patients do. Well, where I go for any MEDICARE services, there are always signs stating Co-Payments up front. Of course NOT everyone is on Medicare where I go. Take care, Nicole!

[GailL1]

I did not say that you suggested it - It is an ethical question because some docs do pull credit reports depending upon the type of insurance a person has - and what their out of pocket cost might be - 

For Medicare, a person that has Traditional Medicare without a Medigap plan or some other coverage for their out of pocket cost like Medicaid or CHAMPVA or TriCare will owe their deductible and anything over what Medicare’s 80% of the Medicare price does not cover.  

A doc or other provider does have the right to pull a credit report if they are going to be extending credit to a beneficiary.  Extending credit means allowing a carry over of the cost that is not paid by insurance.  

Like I said, just an ethical question - 

[Winter2025VA]

@GailL1 , a doctor should be able to pull a patient's Credit Report. Some people act like doctors are well off. Some maybe. Some are still paying off Student Loans, have families and "issues" like patients. Yes, I am NOT well off, but I rather NOT see my doctor IF he is NOT going to be paid. Grateful at age 67, no serious issues. Lol, just need to stop eating = lose weight!!! On the serious side, I guess we all have to do our best to stay healthy. Take care, Nicole!