WAs new ban on medical debt in credit reports at risk of federal override - Lynnwood Today

Washington's ban on medical debt in credit reports faces potential federal override from the Trump administration. This federal initiative seeks to block state laws designed to protect consumers from the fallout of medical debt. Governor Bob Ferguson signed the legislation only months ago, aiming to support residents struggling with medical expenses by keeping such debts off their credit reports. Advocates argue that the law is crucial for promoting financial stability and better credit scores among those facing healthcare costs. Federal officials contend that state policies could disrupt national credit reporting frameworks, raising concerns about consistency.

Local residents have expressed fears about the impact of federal intervention on their financial well-being. If the Trump administration succeeds, it could set a precedent for overriding state consumer protection laws. This situation highlights the ongoing conflict between state and federal authority in consumer finance policy.