Published: August 2024

Groups support proposed CFPB rule to ban medical debt reporting

In comments to the Consumer Financial Protection Bureau, advocates expressed support for proposed rulemaking that would ban medical debts from credit reports, but also urged the agency to ban medical debts charged to medical and general-purpose credit cards.

More than a hundred advocacy organizations signed on to comments supporting the Consumer Financial Protection Bureau’s Notice of Proposed Rulemaking addressing medical debt on credit reports. Unlike other types of debt, medical debt is often unplanned—not consciously taken on, the way a loan or credit card balance is—and is, according to CFPB research, not accurately predictive of whether a person will repay a loan. In 2023, the three major credit reporting agencies—Equifax, Experian and TransUnion—voluntarily removed medical debts that are paid or under $500. These voluntary changes were positive, but still leave unpaid medical debts over $500 on the credit reports of 15 million consumers. The proposed rule would remove those debts owed directly to hospitals and healthcare providers. However, many people charge their medical bills to a credit card. The submitted comments urge the CFPB to extend the credit reporting ban to medical debt incurred using medical lending products and general-purpose credit cards, and to address common abuses by medical payment products providers, such as services being charged that were ultimately never provided, or being charged before the patient was screened for financial assistance eligibility or insurance coverage. The groups also pushed for the agency to extend the credit reporting ban to reports used for employment and tenant screening.

Lead Organization

National Consumer Law Center

More Information

Read the letter here.

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