Medical Debt, Overdraft Fee Rules Could Be Delayed by Trump Order | Global News Avenue

President Donald Trump’s first-day executive order freezing regulations could affect a number of consumer financial rules finalized in the final days of the Biden administration.

As part of a series of executive orders following his inauguration on Monday, President Donald Trump directed federal agencies not to propose any new rules and Federal Register (the official list of all government agency rules) and published delayed implementation rules. That could affect several rules that government consumer watchdogs are finalizing in the final months of President Joe Biden’s administration.

Consumer Financial Protection Bureau finalizes proposed a series of rules between Trump’s election and inauguration. This includes deletion rules Medical debt on your credit report Another limitation is the most Bank overdraft fee is $5both of which have been published in the Register. Credit rules will take effect in March and overdraft fee rules will take effect in October.

So what happens to the suspended rules?

At least one former bureau official believes the new administration is likely to repeal or modify many Biden-era rules. Trump has yet to announce a successor to CFPB Director Rohit Chopra, who the president has the authority to fire under a 2020 Supreme Court ruling.

Several recent CFPB rules, including Credit card late fee limithas also been challenged in court by the banking group. The Bank Policy Institute, a trade group that sued the bureau, praised Trump’s executive order.

“We strongly support President Trump’s decision to suspend all pending rulemaking,” BPI CEO Greg Baer said in a statement. “Regulatory action should be based on law, supported by data and developed through transparent processes to ensure accountability and public input – the foundation of good governance.”

Medical debt rules are also being challenged by industries that may be affected. Separate lawsuits filed this month in Texas by debt collectors and the credit reporting industry also seek to overturn the bill.

However, at least one consumer group is taking steps to defend the medical debt rules.

“The medical debt rule highlights the CFPB’s importance in protecting working people from debt collectors who use the credit reporting system to force payments, including inaccurate or false medical bills,” Chi Chi Wu, senior staff attorney at The Nation the Consumer Law Center wrote in an email to supporters.