Two trade groups filed a lawsuit against the Consumer Financial Protection Bureau claiming it exceeded its authority and ignored the legislative history on medical debts.

(Reuters) - Two groups representing the credit reporting and credit union industries have filed a lawsuit challenging a new rule adopted by U.S. President Joe Biden's outgoing administration banning the inclusion of medical debt in American consumers' credit reports.

Most medical debt will be scrapped from consumer credit reports under a final US rule implementing a Biden administration priority, but Republican lawmakers and the credit reporting industry will likely push to overturn the changes.