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The court granted the plaintiffs’ motion for preliminary injunction in the case challenging the sweeping rule, also on hold by the CFPB’s acting leadership. ACA filed a similar motion in its case against the CFPB’s rulemaking and is expecting a decision soon.

CFPB logo with magnifying glass

The U.S. District Court for the Eastern District of Texas has 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’s decision comes after CFPB Acting Director and Treasury Secretary Scott Bessent had already ordered a suspension of all final rules that hadn’t yet taken effect, as reported by ACA International.

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.

CDIA and Cornerstone Credit Union League filed the lawsuit to challenge the CFPB’s misguided, harmful rule updating Regulation V of the Fair Credit Reporting Act specifically focused on medical debt.

 

 

ACA International

 

ACA and co-plaintiff Specialized Collection Systems Inc. have taken legal action by filing a lawsuit challenging the CFPB’s rule in the U.S. District Court for the Southern District of Texas. The lawsuit aims to prevent the rule from negatively impacting health care providers’ ability to recover owed funds and patients’ access to health care. Additionally, it questions the CFPB’s authority to implement such a rule and its broad approach, citing violations of the First Amendment. This legal battle, supported by ACA’s legal partner Brownstein Hyatt Farber Schreck LLP, aligns with ACA’s commitment to combat government overreach and ensure regulatory compliance.

In January, ACA filed a motion for a preliminary injunction to block the rule’s enforcement and awaits a response from the CFPB. ACA is also collaborating with CDIA and the Cornerstone Credit Union League towards common objectives in challenging government overreach.

For clients seeking information on the rule, it can be confirmed that the rule is currently on hold until at least June 15, 2025. ACA’s lawsuit against the rule is ongoing, and potential future actions by the CFPB or the courts are being monitored. ACA is actively pushing for the use of the Congressional Review Act to revoke the rule, with updates expected soon. ACA’s advocacy team is dedicated to exploring all avenues to permanently halt the rule.

In response to concerns about the Biden administration’s regulatory actions, ACA, along with members of Congress, advocates for a pause in midnight rulemaking efforts. The focus remains on addressing the rule’s implications and advocating for appropriate measures to safeguard the interests of ACA’s members and the healthcare industry.