A group of Senate Democrats are urging the Consumer Financial Protection Bureau to take action to prevent predatory medical debt collection practices.
Last year, the CFPB announced several potential proposals to remove medical debt from consumer credit reports. The senators, in a letter to the CFPB, are asking the CFPB to implement these proposals to address the burden of medical debt families.
“Medical debt does not reflect spending habits or help lenders predict risk; instead, it is evidence of either health issues or a medical emergency. Medical debt places patients at risk of downgraded credit and falling victim to predatory practices,” the senators wrote to CFPB Director Rohit Chopra. “Medical debt remains an unfortunate reality, burden, and liability for millions of individuals and families in our country, who are often some of the most vulnerable. We ask the CFPB to take concrete steps towards tackling the problems surrounding medical debt through proposing rules to further protect patients’ finances, dignity, and health.”
The letter was signed by U.S. Sens. Sherrod Brown (D-OH), Jack Reed (D-RI), Elizabeth Warren (D-MA), Tina Smith (D-MN), Raphael Warnock (D-GA), John Fetterman (D-PA), Laphonza Butler (D-CA), Jeff Merkley (D-OR), Chris Murphy (D-CT), and Ben Ray Luján (D-NM).
Specifically, the senators would like to see the CFPB rule eliminate reporting of all medical debt in consumers’ credit reports; eliminate deferred interest in medical credit products; and prohibit and aggressively enforce against reasonably unfair, deceptive, and abusive practices.
“Medical debt remains an unfortunate reality, burden, and liability for millions of individuals and families in our country, who are often some of the most vulnerable. We ask the CFPB to take concrete steps towards tackling the problems surrounding medical debt through proposing rules to further protect patients’ finances, dignity, and health,: the senator wrote.