U.S. District Court Rules FCRA Preempts Texas Law on Medical Debt Reporting
On August 10, the U.S. District Court for the Western District of Texas issued a ruling stating that the Fair Credit Reporting Act (FCRA) expressly preempts a Texas state law. This Texas law aimed to prevent consumer reporting agencies (CRAs) from including certain out-of-network medical debt information in consumer reports. Specifically, the state statute prohibited the reporting of collection accounts with a medical industry code if the consumer had health coverage and the debt originated from an out-of-network emergency or facility-based provider. The court determined that this Texas law was preempted under 15 U.S.C. § 1681t(b)(1)(E) because it impermissibly enacted a prohibition within a subject matter already regulated by 15 U.S.C. § 1681c. The court reviewed the legislative history, noting that Congress repealed a provision in 2003 that would have allowed states to enact stronger consumer protections, indicating an intent for permanent national uniformity in this area. Consequently, the court permane... 
