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| Topics and Issues | FCRA Rulemaking (15) Medical debt (44) |
In June 2024, the CFPB unveiled its proposed rule on medical debt in credit reports. The Bureau also released an unofficial redline of the proposed rule and a fast facts document. The comment deadline is August 11, 2024. The proposal was covered by a press release. The White House also issued a fact sheet.
The proposal would
- Eliminate the special medical debt exception: The proposed rule would remove the exception that broadly permits lenders to obtain and use information about medical debt to make credit eligibility determinations. Lenders would continue to be able to consider medical information related to disability income and similar benefits, as well as medical information relevant to the purpose of the loan, so long as certain conditions are met.
- Establish guardrails for credit reporting companies: The proposed rule would prohibit credit reporting companies from including medical debt on credit reports sent to creditors when creditors are prohibited from considering it.
- Ban repossession of medical devices: The proposed rule would prohibit lenders from taking medical devices as collateral for a loan, and bans lenders from repossessing medical devices, like wheelchairs or prosthetic limbs, if people are unable to repay the loan.
Additional Resources:
On June 26, a coalition of trade associations wrote to the CFPB urging an additional 30 days to comment on the proposed rulemaking. The letter was signed by ACA International, American Bankers Association (ABA), America’s Credit Unions (ACU), American Financial Services Association (AFSA), Consumer Data Industry Association (CDIA), Consumer Bankers Association (CBA), Independent Community Bankers of America (ICBA), Innovative Lending Platform Association (ILPA), Mortgage Bankers Association (MBA), National Consumer Reporting Association (NCRA), Online Lenders Alliance (OLA), Professional Background Screening Association (PBSA), and US Chamber of Commerce.
Congressional statements
- Statement by U.S. House Financial Services Committee Chairman Patrick McHenry (R-NC).
- Statement by U.S. Senate Banking Committee Chair Sherrod Brown (D-OH).
- Statement by U.S. Rep. Mike Flood (R-NE)
Blogs of note
Statutes and rules
- 12 C.F.R. Part 1022 (Part 1022), Fair Credit Reporting, Regulation V.
- 15 U.S.C. § 1681 et seq., FCRA.