NY Debt Attorney Urges Action as Protections Roll Back for Consumers with Medical Bills
JAMAICA ESTATES, NY — July 17, 2025 — A recent federal court ruling could soon put millions of Americans with medical debt back in financial jeopardy — and one New York debt collection attorney says now is the time to act.
Attorney Tanya Hobson-Williams of Hobson-Williams, P.C., a firm that represents consumers in debt-related legal matters, is sounding the alarm after a Texas federal judge struck down a rule that had barred medical debt from appearing on credit reports.
“This ruling is a wake-up call,” said Hobson-Williams. “Consumers who thought medical debt wouldn’t impact their credit scores anymore may be in for a shock — unless they get ahead of it now.”
The ruling, handed down July 11 by U.S. District Judge Sean Jordan, declared that the Consumer Financial Protection Bureau (CFPB) overstepped its authority by prohibiting medical debt from being factored into credit reports. The CFPB had previously estimated that the now-overturned policy helped raise credit scores by an average of 20 points and removed $49 million in medical debt from reports.
Now that the legal protection is gone, Hobson-Williams says consumers need to be especially cautious when choosing how to address medical debt.
“Before jumping into debt settlement or relief programs, make sure you understand the consequences,” she said. “Some of these services charge high fees, and in some cases, they can actually damage your credit further.”
She advises those receiving collection letters or facing medical bills they can’t pay to seek legal guidance before taking action.
“Consumers still have options, but the window to act before their credit is impacted again is closing fast,” Hobson-Williams said.
