CFPB Cracks Down on Predatory Health Care Practices

By Consumers for Quality Care, on March 20, 2024

CFPB Cracks Down on Predatory Health Care Practices

The Consumer Financial Protection Bureau (CFPB) is taking on a larger role to confront the pervasive issue of medical debt, intensifying its efforts to shield consumers from predatory health care billing practices and medical debt collection, according to KFF Health News.

In the last two years, the CFPB has taken action against various players in the health care industry. For example, the agency has issued warnings to consumers about the dangers of high interest medical credit cards and loans that hospitals push on patients. They have also cracked down on medical debt collectors for engaging in predatory practices against consumers.

Recently, the CFPB announced they were developing rules to drop medical debt from consumers’ credit reports. This rule change would instantly raise credit scores for millions of Americans, increasing their ability to acquire a car loan or home mortgage.

“Everywhere we travel, we hear about individuals who are just trying to get by when it comes to medical bills,” according to Rohit Chopra, the Director of the CFPB. “American families should not have their financial lives ruined by medical bills.”

Medical debt is the most common type of debt found on a consumer’s credit score. The CFPB has noted that mistakes and inaccuracies in medical billing are common, so when these mistakes are included in credit scores, the consequences can be devastating for consumers.

Medical debt should not hamper consumers from living their lives. CQC applauds the efforts being taken by the CFPB but urges America’s leaders to address the root causes of medical debt and protect consumers.