Debt collectors sued in Texas federal court to block the Consumer Financial Protection Bureau’s ban on medical debt in credit reports, marking the second legal challenge to the rule since it was finalized this week.
The CFPB overstepped its authority, undertook a rushed and political rulemaking process, and used outdated data in crafting its rule, ACA International, a trade group for debt collectors, and a Houston-based debt collection firm said in a complaint filed Wednesday in the US District Court for the Southern District of Texas.
The plaintiffs acknowledged Americans’ frustration with medical bills, but said the CFPB acted ...