A Rule Lifting Medical Debt from Credit Scores Was Voided. What Will Change?
|
|
|
An estimated one-fifth of U.S. households have medical debt on their credit reports, a burden that makes it more expensive for them to buy homes or finance new cars, and in some cases makes it more difficult to obtain jobs. A recent court decision has now kept that system in place, the Washington Post reported. A Biden-era rule, announced last summer but never put into effect, sought to forbid credit-reporting agencies, including Equifax, Experian and TransUnion, from using medical debts of over $500 on the detailed credit history reports that lenders use to judge creditworthiness. U.S. District Judge Sean Jordan, who oversees Texas’s Eastern District, concluded in a July 11 ruling that the CFPB’s medical-debt ban would have gone beyond the agency’s authority under the law. Under the Fair Credit Reporting Act, he argued, agencies may report people’s medical information as long as it’s coded to protect privacy — and the act clearly authorizes banks to use that information in their lending decisions. Consumer advocates point out that 14 states already have laws in place prohibiting the use of medical debt for credit reports, and a 15th has such a law pending. It’s unclear how the recent ruling will play into state laws, if at all, say legal experts. Jordan contended that state laws on the matter may also be invalid in principle. But Brad Lipton, director of corporate power and financial regulation at the left-leaning Roosevelt Institute, points out that those state rules “were not being challenged in this litigation, so the court really didn’t have an opportunity to rule on them.” What also stays unchanged: If your medical debts are below $500, they shouldn’t affect your credit score. But if you have unpaid debts above that level, it could take a hit.
|
|
|
Cincinnati-Area Practitioners: Don't Miss the 2025 Midwest Regional Bankruptcy Seminar on August 12!
|
|
|
Cincinnati-area practitioners will not want to miss the 2025 Midwest Regional Bankruptcy Seminar, being held on Aug. 12 at the Westin Cincinnati! The advisory board has created a day-long seminar with focused sessions on the biggest issues in insolvency practice. Catch up with friends and meet new colleagues at the return of this favorite event, then conclude the day’s programming with a networking reception. Register today!
|
|
|
Latest "Unordinary Course" Podcast Episode Examines the Road Ahead for the Automotive Industry
|
|
|
The latest episode of the ABI Business Reorganization Committee’s "Unordinary Course" podcast series features host Lee Pacchia of ICR talking with Purav Adiecha, a principal at Oliver Wyman, LLC, about the road ahead for the automotive industry and OEM manufacturers as they navigate the current economic climate. Click here to listen!
|
|
|
U.S. Weekly Jobless Claims Drop to Three-Month Low
|
|
|
The number of Americans filing new applications for jobless benefits fell to a three-month low last week, pointing to stable labor market conditions, though sluggish hiring is making it harder for many laid-off workers to land new opportunities, Reuters reported. The lack of material labor market deterioration likely gives the Federal Reserve cover to keep interest unchanged next week amid signs that President Donald Trump's aggressive tariffs on imports were starting to lift inflation. Initial claims for state unemployment benefits dropped 4,000 to a seasonally adjusted 217,000 for the week ended July 19, the lowest level since April, the Labor Department said on Thursday. Claims in New York state declined 12,303, more than reversing the prior week's jump, which was attributed to layoffs in the transportation and warehousing, public administration and construction industries. There were also sizeable decreases in filings in California, Michigan and Pennsylvania.
|
|
|
ICE Mortgage Report: Foreclosure Starts, Mortgage Delinquency Rate Increased in June
|
|
|
There were roughly 31,000 foreclosure starts nationwide in June, an increase of nearly 10% compared with May and up 36.5% compared with June 2024, according to ICE Mortgage Technology’s First Look report, MortgageOrb.com reported. In addition, the mortgage delinquency rate increased to 3.35%, up 4.74% compared with May but down 3.8% compared with June 2024. As of the end of the month, there were about 1.834 million homes in some stage of delinquency, an increase of about 90,000 compared with the previous month but down about 39,000 compared with a year earlier. ICE notes that FHA delinquencies, which tend to experience more seasonality, rose by 41 bps in the month, hitting their highest June level since 2013, excluding the 2020-2021 pandemic-era impact. About 466,000 properties were in serious delinquency, flat compared with May but up about 35,000 compared with June 2024.
|
|
|
U.S. Business Activity Rises; Tariffs Fuel Inflation Concerns
|
|
|
U.S. business activity picked up in July, but companies asked higher prices for goods and services, supporting economists' views that inflation will accelerate in the second half of the year mainly because of tariffs on imports, Reuters reported. Despite the increase in activity this month, the survey from S&P Global on Thursday also showed that sentiment among businesses remained downbeat, which it said "primarily reflected broad-based concerns over tariffs and cuts to state funding following recent federal government policy changes." Consumer prices increased by the most in five months in June, with solid rises in the costs of tariff-exposed goods like household furnishings and supplies, appliances, sporting goods and toys, signaling that President Donald Trump's broad import duties were starting to have an impact on inflation. S&P Global's flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, increased to 54.6 this month, the highest level since December, from 52.9 in June. A reading above 50 indicates expansion in the private sector.
|
|
|
Thanks to our Presidential Partners
|
|
|
|
.gif)
.gif)
.png)
