CFPB Proposes Removing Medical Debt from Credit Reports to Aid Families

CFPB will begin rulemaking to remove medical bills from credit reports. This aims to help families recover from medical crises and stop inaccurate data use.
Research shows medical bills have low predictive value in credit decisions, yet many households have them on credit reports.
Proposals would remove medical bills from credit reports, stop creditors relying on them, and halt coercive collection practices.
CFPB has engaged the public, hearing how poor medical billing and coercive credit reporting impact patients.
This is part of CFPB's overall efforts to empower consumers and address issues like data broker practices.

consumerfinance.gov

Relevant topic timeline:

8/28/2023

CFPB Reaches Multibillion Dollar Settlement with Credit Repair Conglomerate

The Consumer Financial Protection Bureau (CFPB) has proposed a settlement with credit repair companies Lexington Law and CreditRepair.com, imposing a $2.7 billion judgment and a 10-year ban on telemarketing credit repair services due to illegal collection of advance fees in violation of federal law.

9/11/2023

CFPB Suffers Legal Defeat on Anti-Discrimination Authority

A federal judge ruled that the U.S. Consumer Financial Protection Bureau (CFPB) does not have broad authority to address discriminatory banking practices, favoring financial industry groups that sued the regulator.

9/14/2023

CFPB: College Tuition Payment Plans Can Confuse and Endanger Student Borrowers

The Consumer Financial Protection Bureau (CFPB) has issued a report revealing that students who enter into agreements with colleges to spread tuition costs may face risks such as high fees, coercive debt collection practices, and unclear disclosures.

9/19/2023

Supreme Court Case Threatens Mortgage Industry and Broader Economy

The Supreme Court will hear a challenge against the Consumer Financial Protection Bureau (CFPB) in a case that could potentially declare the agency's work invalid, raising concerns about the financial stability of the U.S. mortgage industry and the broader economy.

9/22/2023

Biden Seeks to Remove Medical Debt from Credit Reports to Aid Millions

The Biden administration has proposed a measure that would prevent unpaid medical bills from appearing on Americans' credit reports, aiming to end coercive debt collection tactics and improve credit score predictiveness.

10/2/2023

Supreme Court Case Could Limit CFPB's Power and Independence

The Supreme Court is set to hear arguments on the constitutionality of the Consumer Financial Protection Bureau (CFPB) and its funding structure, which could potentially impact other regulators and throw the agency's rules into question.

10/9/2023

Chopra Warns Massive Data Collection By Big Firms Risks Enabling Surveillance State Like China's

The head of the Consumer Finance Protection Bureau (CFPB), Rohit Chopra, warns that the collection of Americans' financial data by large financial firms could lead the United States to resemble China in terms of consolidated market structure and excessive surveillance. Chopra argues for stricter regulations on payment companies to disclose information on personal data and private currencies.

10/10/2023

CFPB Sues Freedom Mortgage for Providing False Data and Violating Prior Order

The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Freedom Mortgage Corporation for providing false data on its mortgage operations in violation of a law enforcement order, highlighting the agency's commitment to ending misconduct in the financial industry.

10/19/2023

Business Groups Oppose CFPB Plan to Cut Credit Card Late Fee Limit

A coalition of groups is urging the Biden administration to withdraw a new rule proposed by the Consumer Financial Protection Bureau (CFPB) that would lower the cap on credit card late fees, arguing that it will harm consumers and economic growth. The groups claim that the rule will lead to higher costs for responsible consumers and reduce credit access for low-income workers.

10/19/2023

CFPB Proposes Open Banking Rule to Empower Consumers, Increase Competition

The Consumer Financial Protection Bureau (CFPB) has proposed a rule to accelerate open banking, granting consumers control over their financial data and protection against misuse, allowing them to switch to better financial products and services.