Imagine this: you get sick. Not something you planned, not something you chose. Maybe it’s a surgery, maybe a hospital visit that drags on longer than expected. You survive it—but the bill follows you home. Now, that medical debt isn’t just sitting in your mailbox or showing up in collections calls. It’s showing up on your credit report. And because of that, your credit score drops. Suddenly, that apartment you applied for? Denied. The car loan you needed? Higher interest. Even getting a simple credit card gets harder. Why? Not because you’re bad with money, but because you got sick.
That’s the reality for millions of Americans. And a recent court ruling just made sure it stays that way.
Under the old administration, The Consumer Financial Protection Bureau (CFPB) had tried to change things. They wanted medical debt wiped from credit reports, arguing it doesn’t reflect how responsible a person is with money. Their logic was simple: medical bills don’t predict whether someone will repay a loan. Ex-CFPB Director Rohit Chopra said it clearly: “People who get sick shouldn’t have their financial future upended.” The goal was to stop debt collectors from using credit reports as a weapon—to force people into paying medical bills they might not even owe.
But industry groups pushed back. They claimed lenders need that debt info to judge who’s “worthy” of credit. The court agreed. One federal judge ruled that the CFPB overstepped its authority. Just like that, the policy was overturned.
Now, medical debt stays on your credit report.
I’m telling you this not as a headline, but as a warning. If you’re one of the 100 million Americans carrying medical debt, this affects you personally. Your financial future is still being shaped by whether or not you’ve been unlucky enough to need medical care.
Advocates aren’t giving up. Over a dozen states are trying to create their own protections. But right now? Whether that medical bill ruins your credit depends on where you live—and whether lawmakers in your state think getting sick should punish you financially.
In the end, this isn’t about “data accuracy” or “credit risk analysis.” It’s about whether we believe illness should decide who gets to own a home, buy a car, or rebuild their life.
This ruling says yes.
Even though this court ruling allows medical debt to stay on credit reports, there’s still one key protection you should know about:
As of July 2022, the three major credit bureaus - Equifax, Experian, and TransUnion - agreed to remove paid medical debts from credit reports entirely. So if you had a medical debt and you paid it off (even if it went to collections), it should no longer appear on your credit reports.
Additionally, starting in 2023, they also stopped reporting medical collections under $500, even if unpaid.
So, if you:
Paid a medical debt of any size – it should be gone from your report.
Have a medical collection under $500 – it should not appear on your report, even if unpaid.
But here’s the catch:
This isn’t because of the CFPB’s rule that just got overturned. This is from a voluntary policy change by the credit bureaus, likely due to public pressure.
The court ruling means:
Medical debts over $500, unpaid, can still show up on your credit.
Industry groups can continue pushing to keep all medical debts reported.
Bottom line:
If your medical debt is under $500 or paid off, you should be safe for now—but it’s not a law, and policies can shift. You still need to monitor your credit reports closely to make sure those small or paid debts aren’t haunting your score.
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