Colorado ban on reporting medical debt on credit reports challenged 

A Colorado law that prevents medical debt from appearing on consumer credit reports is being challenged after a new federal rule asserted that national credit reporting standards override state policies, reports Colorado Newsline. Colorado’s 2023 law, the first of its kind in the nation, was designed to shield residents from the credit impacts of medical bills, a protection now in legal jeopardy as the Consumer Financial Protection Bureau’s reinterpretation of the Fair Credit Reporting Act could preempt state limits on reporting medical debt. A national collections trade group sued Colorado, arguing the state’s law harms accurate credit reporting and financial markets, while advocates warn that reinstating medical debt on credit reports could make it harder for people to secure housing, employment, or loans.