Texas judges repeals CFPB’s medical debt rule

A Texas judge has vacated the Consumer Financial Protection Bureau’s medical debt rule and specifically admonished states that have sought to take medical debt off credit reports in a major win for the Trump administration, banks and two trade groups that sued the agency.

On Friday, U.S. District Judge Sean D. Jordan, of the U.S. District Court for the Eastern District of Texas, dismissed and set aside the CFPB’s medical debt rule with prejudice, meaning it cannot be issued again in the future. The CFPB also agreed that it will not issue any similar rule in the future. 

The judge sided with two trade groups — the Consumer Data Industry Association and Cornerstone Credit Union League — who sued the bureau in January claiming the medical debt rule exceeded the bureau’s statutory…