In 2025, several new rules and reversals reshaped how medical debt, mortgage disclosures, credit reporting, and consumer protections will affect everyday people. If you’ve been wondering how these changes might impact your financial future, you’re not alone. The good news is that you do not have to figure it out on your own.
This guide breaks down what happened in 2025, what is likely coming in 2026, and what it means for you and your rights as a consumer.
Medical Debt Protections: A Step Forward, Then Two Steps Back
For many Americans, unpaid medical bills are the first debt they struggle with. Early in 2025, new rules required credit bureaus to stop reporting certain medical debts. The change was meant to give families breathing room and prevent a sudden dip in credit scores over an emergency room visit.
But by late 2025, there was a shift in the medical debt landscape. A federal judge reversed parts of this rule after industry groups pushed back, and the Consumer Financial Protection Bureau (CFPB) began reviewing petitions to repeal or scale back medical debt protections.
The petition filed by the CFPB and industry groups seeks to rescind the prior regulation that would have removed about $49 billion in medical debt from reports.
What this means for you:
- Medical debt may once again appear on credit reports in certain states.
- Even if wiped earlier in 2025, your balances could reappear if the protections are fully rolled back.
- You still have rights under the Fair Credit Reporting Act to dispute inaccuracies.
State-Level Advances: New York Leads the Way
While federal protections were rolled back, some states like took matters into their own hands. In mid-2025, New York passed a sweeping Consumer Protection Act. Among other provisions, it shortened the time debt collectors can sue over certain debts, increased penalties for abusive collection practices, and strengthened privacy safeguards.
Other states, including California and Colorado, are considering similar reforms heading into 2026.
What this means for you:
- Where you live determines how much protection you have.
- State laws may give you more leverage against collectors, even if federal rules weaken.
- Guardian Litigation Group monitors these laws closely to ensure clients benefit from the strongest protections available.
Privacy and Credit Reporting: Tighter Rules Ahead
In late 2025, Congress approved stricter requirements on how data brokers and credit bureaus handle consumer data. By early 2026, companies will face larger fines for failing to safeguard consumer information.
For families who have faced identity theft or inaccurate credit reports, this change is overdue. But enforcement will take time, and many companies are lobbying for exceptions.
What You Can Do Now:
Facing debt in an uncertain legal landscape can feel discouraging. The rules change, creditors exploit gray areas, and consumers are left wondering where they stand. Here are steps you can take today:
- Check your credit report regularly to catch medical or other debts that may have reappeared.
- Know your state’s laws. If you live in a state like New York, you may have more rights than federal law provides.
- Document all collector contact in case harassment claims arise.
- Review loan disclosures carefully and ask questions before signing.
- Seek trusted legal guidance to make sure you are not missing protections you are entitled to.
AI Tools used to Harass or Misreport Debts
Technology is changing debt collection as quickly as the law. In 2025, more collectors began using digital platforms, automated texts, and even AI-driven scoring systems to track and pressure consumers. On paper, these tools are supposed to streamline communication. In practice, they are already pushing against existing legal boundaries.
Risks you may face include:
- Overly aggressive automated outreach. Some collectors send repeated texts, emails, or robocalls that feel like harassment.
- Inaccurate AI-generated offers. Algorithms may miscalculate what you owe or present misleading “discount” settlements that still leave you liable.
- Large-scale misreporting. Automation allows errors to spread quickly, meaning a wrong entry could appear across all three credit bureaus almost instantly.
Steps to protect yourself:
- Request written verification. Under the Fair Debt Collection Practices Act (FDCPA), you have the right to ask a collector to validate the debt in writing.
- Keep detailed records. Save all texts, emails, voicemails, or letters. These can be crucial if harassment claims arise.
- Challenge inaccuracies immediately. If an AI system misreports your balance or account status, dispute it with the credit bureau and demand correction.
A Partner in Your Corner
New debt laws in 2025 proved just how quickly consumer protections can change. One month you may be protected, the next you may be exposed. That uncertainty is why having a partner who tracks these laws and fights for your rights is so important.
At Guardian Litigation Group, we help clients make sense of shifting debt laws and use every available protection to defend against creditors, reduce debts, and restore peace of mind. If you are unsure how these changes affect you, reach out today.
Guardian Q&A
1. Do these new debt laws apply nationwide?
Not always. Federal rules apply everywhere, but state laws vary. States like New York offer stronger protections.
2. Will “Buy Now, Pay Later” (BNPL) payments start affecting my credit score?
Beginning in fall 2025, FICO announced it will begin incorporating BNPL repayment data into credit scoring models. That means timely payments could help your score, but missed or late payments may damage it.
If you use BNPL plans (like “pay-in-4” options), this is a big shift. It gives consumers more opportunity to build credit if used responsibly but also adds risk. Tracking those payments carefully becomes essential.
3. How does the shift in CFPB leadership affect protections against creditor abuse?
In 2025, Treasury Secretary Scott Bessent was tapped as acting head of the CFPB, following the removal of the prior director. This leadership change signals possible reprioritization or rollback of regulations that had stronger consumer protections.
What this means to you:
- Some enforcement efforts (e.g. on overdraft, late fees, open banking) may slow.
- Regulatory proposals may be paused, delayed, or rescinded, especially those opposed by industry.
- States may be asked to step in more aggressively to protect consumers.
4. Can I sue a debt collector for harassment under these new rules?
Yes. Federal and state laws still prohibit harassment, and new state-level laws may increase penalties.
5. How do I know if I qualify for state-specific debt protections?
Check your state attorney general’s website or consult a law firm like Guardian Litigation Group to confirm your rights.
6. What’s new in federal consumer law coming into effect in 2025 besides medical debt rules?
Several federal and regulatory changes are scheduled for or tied to 2025 that touch debt, disclosure, privacy, and more. Knowing these ahead of time gives you options; for example, you can delay a refinance or move while better disclosure rules are in force.
7. Can creditors use digital or AI tools to harass or misreport debts under new 2025 rules?
Debt collectors are increasingly using automated systems, text bots, AI monitoring, and algorithmic scoring to track and pressure consumers. Some of these tools are pushing past current legal limits. ELH / HR4Sight+1
Risks you may face:
- Overly aggressive automated texts or voice messages.
- Inaccurate AI-generated debt assessments or offers.
- Systemic misreporting facilitated by large-scale automation.
To protect yourself:
- Ask for written verification.
- Keep communication records.
- Challenge AI-driven misreporting under the Fair Debt Collection Practices Act (FDCPA).
8. Will credit bureaus be liable if they reinsert medical debt that was previously removed under earlier rules?
That’s a developing question right now, especially given the legal challenge over the rule reversal. If the rule banning medical-debt reporting is struck down, but bureaus reinsert debts improperly (e.g., without sufficient verification), they may face FCRA (Fair Credit Reporting Act) liability.
The information provided in this blog article is for informational and entertainment purposes only and should not be construed as legal advice. It is not intended to create, and does not constitute, an attorney-client relationship. Every legal situation is unique, and readers should consult a licensed attorney for advice specific to their circumstances.