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District court allows plaintiffs to drop the case challenging CFPB’s medical debt rule

August 8, 2025

On August 1, the U.S. District Court for the Southern District of Texas dismissed without prejudice a case against the CFPB’s medical debt rule (covered by InfoBytes here) following the plaintiffs’ request to withdraw their case. The district court agreed to dismiss this case after another district court vacated the CFPB’s medical debt rule in a similar lawsuit (covered here).

The plaintiffs submitted a notice of voluntary dismissal, formally ending the legal challenge against the CFPB and its officials before the court issued a substantive ruling on the merits. The court accepted the filing but allowed the plaintiffs the option to refile the case in the future.


Visit our resource center, CFPB Pause: Where From Here?, to stay on top of the latest and what it may mean for the federal and state regulatory and enforcement landscape.