by Consumer Financial Protection Bureau

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) finalized a rule that will remove an estimated $49 billion in medical bills from the credit reports of about 15 million Americans. The CFPB’s action will ban the inclusion of medical bills on credit reports used by lenders and prohibit lenders from using medical information in their lending decisions. The rule will increase privacy protections and prevent debt collectors from using the credit reporting system to coerce people to pay bills they don’t owe. The CFPB has found that medical debts provide little predictive value to lenders about borrowers’ ability to repay other debts, and consumers frequently report receiving inaccurate bills or being asked to pay bills that should have been covered by insurance or financial assistance programs.

by Brownstein Hyatt Farber Schreck, Sarah Auchterlonie, Courtney Bartkus, Leah Dempsey, Joel Herberman, Leah Regan-Smith - JD Supra

On Sept. 21, 2023, the Consumer Financial Protection Bureau (CFPB) officially announced it is considering a rulemaking to address several consumer reporting topics under the Fair Credit Reporting Act (FCRA). Under the process established by Congress in the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), the CFPB is required to consult with representatives of small entities likely to be affected directly by the regulations. Thus, the CFPB convened a panel of Small Entity Representatives (SERs) to consider and provide feedback on its proposals and alternatives under a condensed time frame of approximately one month.

CFPB Finalizes Rule to Remove Medical Bills from Credit Reports

CFPB Seeks to Fundamentally Alter the Credit Reporting Process and Use of Public Data