State Medical Debt Credit-Reporting Bans vs. Federal Preemption: Where Things Stand
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15 states have passed laws since 2023 restricting or banning medical debt from appearing on credit reports. In October 2025, the CFPB issued an interpretive rule arguing federal law (the FCRA) preempts those state laws entirely, and in November 2025 a debt-collection trade group sued Colorado directly over its law on that basis — the first real court test of that theory. As of this writing, no court has ruled on it. The state laws remain on the books and enforceable unless and until a court says otherwise; nothing has been struck down yet.
This is a live legal fight, not settled law — treat this page as a status update, not a final answer. For the separate question of what the bureaus’ own voluntary policies currently do (unrelated to these state laws), see Medical Debt.
How did we get here?
The CFPB finalized a federal rule in January 2025 that would have banned medical debt from credit reports nationwide. A Texas court vacated that rule in July 2025 after the CFPB itself agreed to abandon defending it under the new administration — see Medical Debt for that federal history in full. With the federal rule gone, attention shifted to the 15 states that had already passed their own, separate medical-debt credit-reporting laws starting in 2023. In October 2025, the CFPB issued an interpretive rule taking the position that the FCRA broadly preempts state laws regulating credit-report content, specifically naming state medical-debt laws as an example — but an interpretive rule is the agency’s legal opinion, not a court ruling, and doesn’t by itself invalidate any state’s law.
Which states have these laws?
As of this writing, these 15 states have passed laws restricting or banning medical debt from appearing on credit reports: California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Minnesota, New Jersey, New York, Oregon, Rhode Island, Vermont, Virginia, and Washington. The laws aren’t identical — they vary in exactly how they restrict medical debt reporting (some bar credit bureaus from including it, others bar providers or collectors from furnishing it in the first place) — so if you’re in one of these states, checking your own state’s current statute directly is worth doing rather than assuming a specific mechanism applies to your situation.
Is there an actual lawsuit over this?
Yes — one, so far. In November 2025, ACA International (a debt-collection trade group) and a member collection agency sued Colorado in federal court (ACA International v. Fulford) over Colorado’s 2023 law (HB 23-1126), arguing it’s preempted by the FCRA and separately violates the First Amendment by restricting truthful commercial speech. As of this writing, the case is still pending — no ruling has been issued. This is the case actually worth watching: if a court rules the FCRA preempts Colorado’s law, that reasoning would likely be cited against the other 14 states’ laws too, even though only Colorado’s is currently being challenged directly.
What does this mean for me right now, today?
Nothing has changed yet. Every one of these 15 state laws remains in effect and enforceable as written unless and until a court actually rules against it — the CFPB’s interpretive rule is a legal argument, not a court order, and it hasn’t invalidated any state’s law by itself. If you live in one of the 15 states listed above, the protection your state law provides still applies today. This page will be updated when the Colorado case is actually decided, not before.
Questions & Answers
Does the CFPB's October 2025 interpretive rule mean state medical-debt laws are dead?
No. An interpretive rule states the agency's legal position — it isn't a court ruling and doesn't itself strike down any law. States' laws remain enforceable unless and until a court actually rules against them, which hasn't happened yet.
— US Debt Compass Editorial Team
If Colorado's law gets struck down, does that automatically affect my state's law too?
Not automatically — a ruling in a Colorado federal court applies directly to Colorado's law. But the legal reasoning in that ruling, whichever way it goes, would likely get cited in future challenges to the other 14 states' laws, since they're built on similar legal ground.
— US Debt Compass Editorial Team
Where can I check my own state's current law directly?
Your state's attorney general's office or state legislature website will have the current, authoritative text — worth checking directly given how actively this is being litigated, rather than relying on any single secondary summary, including this one.
— US Debt Compass Editorial Team
Does any of this affect the bureaus' own voluntary policies on paid or small medical debts?
No — those are separate. Equifax, Experian, and TransUnion's own 2022-2023 voluntary policies (no debt under $500, paid debt removed) aren't a state law and aren't part of this litigation. See [Medical Debt](/debt-types/medical-debt) for how those policies currently work.
— US Debt Compass Editorial Team