Colorado Officials Decry Federal Move to Reinstate Medical Debt on Credit Reports
Colorado’s Attorney General and Democratic lawmakers have voiced strong opposition to a recent action by the Trump management that allows medical debt to once again be included on consumer credit reports. They argue the move will disproportionately harm coloradans already struggling with healthcare costs and financial stability.
According to a 2022 report by the Consumer Financial Protection Bureau (CFPB), approximately 12% of Colorado residents – roughly 700,000 people – carried medical debt on their credit files, totaling $1.3 billion statewide. The median balance for an individual was $711.
Attorney General Phil Weiser criticized the decision as “insult to injury,” given that the CFPB was established by Congress to protect consumers. He highlighted the potentially devastating consequences of including medical debt in credit calculations, stating it ”can damage or ruin credit records, destroy families’ financial stability, deter seeking needed medical treatment, or lead to bankruptcy.” His office detailed these impacts in a 2023 issue brief.
Democratic lawmakers who sponsored a state law aimed at protecting consumers from the negative impacts of medical debt echoed these concerns. Representative Naquetta Ricks of Aurora explained the law’s intent: “By keeping it off the credit report, you’re not saying that you don’t owe the debt, you still have to pay back, but you’re just not trapping people in this debt that just…becomes like a noose around their neck.” She noted that legislators heard numerous stories of families caught in cycles of debt and stress due to medical bills.
Senator Tony Exum of Colorado Springs added, ”It’s disappointing that the Trump administration wants to interfere with the Colorado legislative process. They seem to be going out of their way to make it more expensive for Coloradans with medical debt. It’s cruel in a way because nobody plans for this.”
The opposition comes as the Consumer Data Industry Association (CDIA), representing consumer reporting agencies and credit bureaus, has applauded the CFPB’s new rule, arguing for a single national standard for credit reporting. the CDIA contends that state-level regulations fragment the system and could increase borrowing costs for consumers.
This position is supported by a lawsuit filed by the American Collectors Association against the state,which claims the Colorado law overlooks “unintended consequences” and harms both medical providers and patients by suppressing “truthful information about unpaid medical bills.”
Sources:
* https://coag.gov/app/uploads/2023/02/Medical-Debt-Issue-Brief.pdf
* https://www.cdiaonline.org/news/2025/10/28/cdia-applauds-the-cfpbs-new-interpretive-rule/
