Summary
On February 6, the U.S. District Court for the Eastern District of Texas granted a preliminary injunction (PDF) in favor of the Consumer Data Industry Association (CDIA) and Cornerstone Credit Union League, delaying the Consumer Financial Protection Bureau’s medical debt credit reporting rule until June 15, 2025.

The court also ordered that:

• All deadlines scheduled for this matter are stayed until May 7, 2025.
• The hearing and oral argument on the plaintiffs’ motion for a preliminary injunction is May 12, 2025.

In addition to the lawsuit noted above, under the direction of ACA International Board President and State’s CEO & President Tim Haag, the association filed in the U.S. District Court for the Southern District of Texas, Houston Division, also challenging the rule. The association is awaiting a response from the CFPB and a possible hearing on the preliminary injunction request.

Haag, along with State’s Chief Compliance Officer and General Counsel Mike Frost visit Washington, DC multiple times each year, educating both legislators and regulators on healthcare revenue cycle and accounts receivables management issues. Their efforts have included two visits to the White House to meet with Biden’s Special Advisors on healthcare and medical debt issues.

Impact to your organization
The credit reporting rule that prohibits the consideration of medical debts on credit reports has been stayed until at least June 15, 2025.

Additionally, newly confirmed Treasury Secretary and Acting CFPB Director Scott Bessent ordered a suspension of all final rules that hadn’t yet taken effect. The ACA continues to advocate for Congress to consider using the Congressional Review Act to stop the rule permanently.

Additional Information
State will provide you with the latest information as it becomes available.