Colorado Officials Decry โFederal Move to Reinstate Medical Debt โขon Credit Reports
Colorado’s Attorney General and Democratic lawmakers have voiced strong oppositionโ to a recent action by the Trumpโ management that allows medical debt to once again be included on consumer credit โคreports. Theyโ argue the move will disproportionately harm coloradans already strugglingโค with healthcare costs and โคfinancial stability.
According โtoโข a 2022 report by the Consumer Financial Protection Bureau โค(CFPB), โapproximately 12% of Colorado residents – roughly 700,000 people – โขcarried medical โคdebt 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 โthat theโ CFPB wasโค established by Congressโ toโ protect consumers. He highlighted the potentially devastating consequences of including medical debt in credit calculations, stating it โ”can damage or ruin credit records, destroy families’ financial stability, deter seeking needed medical treatment,โข or leadโค to bankruptcy.” His office detailed theseโฃ impactsโฃ in a 2023 issue โขbrief.
Democratic lawmakers who sponsored a state law aimed at protecting consumers from the negative impacts of medical debt echoed these concerns. Representative Naquetta Ricks ofโ 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 โhave toโ pay back, but you’re โjust โฃnot trapping people in this debt that justโฆbecomes like a โnoose around their neck.” She noted that legislators heard numerous stories โขof families โcaught in โฃcycles of debt and stress due to medical bills.
Senator Tony Exum of Colorado Springs added, โข”It’s disappointing that the Trump administration wantsโข to interfere with the Colorado โlegislative process. They seem โคto be going out of their way to make it more expensive for Coloradansโค with medical debt.โฃ It’s โฃcruel in a way because nobody plans for โthis.”
The oppositionโค comes asโ the Consumer Data Industry Association (CDIA), representing โขconsumer reporting agencies and credit bureaus, has applauded the CFPB’s new rule, arguing for a single national โคstandard for creditโ reporting. the CDIA โcontends that โคstate-level regulations fragment the system โand could increase borrowing costs for consumers.
This โขposition is supported by a lawsuit filed by โthe โขAmerican Collectors Association against theโ state,which claims theโ Colorado law โฃoverlooks “unintended consequences” and harms both medical providersโฃ and patients by suppressing “truthful information โฃabout unpaid โฃmedical โขbills.”
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/
