Credit Reporting Companies Ask Court to Pause Medical Debt Rule

Credit reporting companies asked for a temporary pause on a Consumer Financial Protection Bureau rule barring medical debt from consumer credit reports while their lawsuit seeking to overturn the rule moves ahead.

Without an injunction, credit reporting companies—including industry giants Equifax Inc., Experian Plc, and TransUnion—will “incur unrecoverable compliance costs as they adjust their systems, procedures, and training to remove medical debt from their consumer reports,” industry groups said in a motion filed Jan. 10 in the US District Court for the Eastern District of Texas.

The Consumer Data Industry Association, along with the Texas-based Cornerstone Credit ...