US watchdog issues warning to medical debt collectors [View all]
Source: Reuters
October 1, 2024 2:51 PM EDT Updated 4 hours ago
Oct 1 (Reuters) - The top U.S. consumer financial watchdog on Tuesday warned medical debt collectors they face enforcement action by federal regulators if they illegally attempt to collect on inaccurate or legally invalid medical debts.
Around 100 million Americans currently owe $220 billion in medical debt, according to the U.S. Consumer Financial Protection Bureau, which issued legal guidance on what it said were illegal debt collection tactics.
THE TAKE
The CFPB, the federal agency that industry loves to hate, is making its latest move to clamp down on revenue-generating practices it says are predatory.
With a large segment of the electorate angered by rising prices in a tight election year, Vice President Kamala Harris has also spearheaded the CFPB's efforts to remove medical debt from consumer credit reports.
Read more: https://www.reuters.com/business/healthcare-pharmaceuticals/us-watchdog-issues-warning-medical-debt-collectors-2024-10-01/
Link to CFPB PRESS RELEASE - CFPB Director Chopra Joins White House Event on Medical Debt
Link to CFPB Consumer ADVISORY - Consumer advisory: Pause and review your rights when you hear from a medical debt collector
Link to CFPB Final RULE (PDF) - Debt Collection Practices (Regulation F); Deceptive and Unfair Collection of Medical Debt
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