this post was submitted on 14 Jul 2025
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A federal judge in Texas has reversed a Biden administration rule that wiped medical debt from credit reports, affecting nearly 15 million Americans.

The rule, which did not discharge debt but changed how credit scores could be calculated, would have removed $50 million of medical debt from credit reports.

U.S. District Judge Sean Jordan, who was appointed by President Donald Trump during his first term, argued in his decision that the Fair Credit Reporting Act does not allow the Consumer Financial Protection Bureau (CFPB) to remove medical debt from reports.

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[–] Ava@lemmy.blahaj.zone 2 points 1 week ago (1 children)

As with most things, not categorically, but commonly. I had some cosmetic (technically reconstructive might be more accurate, but it was "elective") surgery a couple of years ago, and I believe I paid like 85% of the bill up front. My recollection is that the remainder was due to some variables in the final cost.

However, that's not to say it can't be financed even if due up front. One could certainly use any number of debt-based funding methods to acquire the money, and the surgery provider would have no means of knowing.

[–] goferking0@lemmy.sdf.org 2 points 1 week ago

Fair, but did those financial methods count as the ones not showing on credit reports?

I also know some insurance will cover stuff like reconstruction or othet cosmetic surgeries but also wouldn't exactly be what was being filtered from being on credit reports