A new CFPB report titled “Medical Debt Burden in the United States,” takes aim at medical debt collections, with the CFPB indicating that it intends to “[d]etermine whether policies should be implemented to eliminate unpaid medical billing data on credit reports altogether.”

The CFPB found that as of 2021, medical debt was the most common debt collection tradeline on credit reports, constituting 58% of all third-party tradelines. … Continue Reading

In a blog post, the CFPB reported that the Department of Veterans Affairs (VA) has announced a change to when it will report information on outstanding medical bills to consumer reporting companies.

Under the new VA rule, the VA will only report medical debt that meets all of the following standards:

  • The VA has exhausted all other debt collection efforts,
  • The VA has determined the individual responsible is not catastrophically disabled or entitled to free medical care from the VA, and
  • The outstanding debt is over $25.
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State legislatures in New Mexico and Nevada enacted laws this session targeting medical debt collections. Both laws have been signed by the states’ Governors and take effect July 1, 2021.

New Mexico Patients Debt Collection Practices Act 

The New Mexico Patients Debt Collection Practices Act places a number of requirements on health care facilities and debt collectors and buyers.… Continue Reading

The next meeting of the CFPB’s Consumer Advisory Board will take place on February 19 in Washington, DC. The focus of the meeting will be to “discuss trends and themes related to consumer and financial well-being and medical debt.” The meeting is open to the public and will be recorded. The CFPB on December 11 of last year held a field hearing about medical debt collection.… Continue Reading

According to a report issued yesterday by the CFPB entitled “Data point: Medical debt and credit scores,” credit scoring models may be overly penalizing consumers with medical debts that go into collection by producing credit scores that underestimate such consumers’ creditworthiness. 

To conduct its analysis, the CFPB used data in its Consumer Credit Panel (CCP). … Continue Reading