Published: October 2022

Coalition asks CFPB to issue a rule that would prohibit medical debts from appearing on credit reports if the debts arose from medically necessary services

Consumer Action was one of 91 consumer, civil rights, healthcare and advocacy organizations signed on to a letter urging the Consumer Financial Protection Bureau to begin the process of issuing a rule that would prohibit medical debts from appearing on credit reports if the debts arose from medically necessary services.

Nearly 100 consumer, civil rights, healthcare and advocacy organizations, including Consumer Action, signed on to a letter urging the Consumer Financial Protection Bureau (CFPB) to begin the process of issuing a rule that would prohibit medical debts from appearing on credit reports if the debts arose from medically necessary services. Since CFPB Director Chopra’s confirmation a year ago, the agency has made significant progress on the issue of medical debt collection and reporting. However, while the nationwide credit reporting agencies (Equifax, Experian and TransUnion) have adopted policies that will result in the removal of the majority of medical debt from credit reports, the debts that remain are held by the most vulnerable consumers, including those who may have larger medical bills due to catastrophic or chronic medical issues, and low- and moderate-income consumers who cannot afford to pay off the debts. The inclusion of these debts in credit reports is, arguably, not necessary for the purposes of assessing creditworthiness, but instead can result in the denial of employment and housing based on indications that the consumer has a chronic health issue or disability.

Lead Organization

National Consumer Law Center

More Information

Click here to read the coalition letter.

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