Suit Challenging Texas’ Medical-Debt-Collection Law May Proceed

The Consumer Data Industry Association, which represents the three nationwide credit reporting agencies, has standing to sue Texas over a law that restricts information concerning a person’s medical bills that can be shared on credit reports.

The ruling by the US Court of Appeals for the Fifth Circuit allows CDIA’s claim that the law is preempted by the Fair Credit Reporting Act to proceed.

Under the law, a reporting agency can’t include any information that has a medical industry code on a consumer credit if the consumer was covered by health insurance at the time the debt was incurred.

CDIA ...