Sen. Lesser, Rep. Gilchrest Condemn Federal Ruling Striking Down Protections for those with Medical Debt

HARTFORD – Today, State Senator Matt Lesser and State Representative Jillian Gilchrest, co-chairs of the Human Services Committee, condemn a ruling by a federal judge that strikes down a Biden-era ruling that prohibits medical debt from being considered on a credit report. The rule made by the Consumer Financial Protection Bureau (CFPB) in early January 2025 incorporated language from a Connecticut law passed by Sen. Lesser and Rep. Gilchrest in May 2024. U.S. District Court of Texas’ Eastern District Judge Sean Jordan, appointed by President Trump, struck down the rule this week.

Despite the federal ruling, Connecticut residents are still protected by the law passed by the Connecticut General Assembly.

“Once again, a Trump-appointed judge has put the interests of medical debt collectors ahead of the interests of the American people,” said Sen. Matt Lesser (D-Middletown). “This at the same time that President Trump has blown up the Consumer Financial Protection Bureau (CFPB), which was designed to protect the American people from scam artists and financial predators, slashed the Medicaid program and food stamps, and dramatically increased the cost of borrowing for anyone with student loans. The good news is that Connecticut residents are protected from this specific ruling, thanks to 2024’s Senate Bill 395. I was proud to champion this legislation and lead bipartisan passage in the Senate which helped the CFPB build the case for their national rule.”

“In May 2024, our state legislature passed, and the Governor signed, a bill to prohibit medical debt from being reported on someone’s credit score,” said Rep. Jillian Gilchrest (D-West Hartford). “I am so relieved that we established this important policy in Connecticut. The research shows that medical debt is not a good indicator of whether or not someone will default on a loan, and yet, a credit score can have a significant impact on a person’s ability to rent or buy a home, purchase a car, and many other major financial decisions. It is a shame, but not at all surprising, that the U.S. District Court of Texas’ Eastern District would cancel a Biden policy that mirrors Connecticut’s law for all Americans, putting their credit unnecessarily in jeopardy at a time when medical costs continue to rise. In Connecticut, our residents remain protected.”