📣 Medical Debt Rule Reversal: What It Means for Your Credit (And What You Can Do About It)

I hope you had a great weekend and are stepping into this week with purpose and peace. Unfortunately, I’m back today with some news from the credit world that’s not quite the win we were hoping for—but don’t worry, I’ve got solutions, not just problems. Let’s break this down.

🧠 What Just Happened?

Earlier this year, a groundbreaking rule from the Consumer Financial Protection Bureau (CFPB) was announced to wipe all medical debt from credit reports. That’s right—$50 billion in medical debt affecting around 15 million Americans would have been removed.

But if you’ve been following closely, you might remember I warned that this rule could be short-lived. And sadly, I was right. Just last week, U.S. District Judge Sean Jordan officially reversed the CFPB’s ruling, stating it overstepped authority under the Fair Credit Reporting Act.

😟 What Does This Mean for You?

While the ruling was supposed to take effect in March 2025, the truth is—most consumers never saw the benefits. A temporary CFPB shutdown and political friction meant medical debts continued showing up on reports anyway.

So if you’ve been pulling credit for yourself or clients and still seeing collections for hospital bills or surprise visits—that’s why. This reversal just means nothing changes for now. But here’s what we can still count on:

✅ Paid medical collections must be removed
✅ Medical debts under 12 months old can’t be reported
✅ Debts under $500 also stay off credit reports

That’s still good news—but knowing what’s allowed and how to respond is key.

💪 What Can We Do?

This ruling may feel like a step backward, but don’t panic—we still have powerful tools on our side. Here's the truth: many medical debts are still inaccurate, outdated, or misreported, especially when sold to collection agencies or shuffled between hospital billing departments.

That gives us a real opportunity to dispute and remove harmful items the right way.

🔧 That’s where Debts in a Row LLC comes in.
We offer a secure, digital dispute platform that helps clients challenge incorrect or unverifiable medical debt—and win.

If you’re working with clients on homeownership goals, tag us in as soon as you see medical collections on their reports. Don’t let them waste hard-earned savings on debts they might not even owe. That money could be better used toward their down payment or closing costs.

🗣️ Final Thoughts

While this isn’t the news we hoped for, knowledge is power—and staying informed is how we protect progress.

Credit shouldn’t be a mystery, and you don’t have to face confusing changes alone. If you have questions about how this affects you, your credit, or your clients, I’m always just a message away.

Let’s continue to advocate for fair credit reporting—and empower our community to take charge of their financial future. I’ll be back next week with updates from the FOMC meeting (fingers crossed for better news!).

Until then, keep your head up, your credit tight, and your goals in sight.
—
Heather Howe
Founder | Debts in a Row LLC
📧 debtsinarowllc@gmail.com
📞 270-935-1675
🌐 www.debtsinarowllc.com