The Consumer Financial Protection Bureau issued an advisory opinion that said debt collectors, which may include third-party “revenue cycle management” companies, are violating federal law when they collect on inaccurate or legally invalid medical debts.
CFPB issues advisory on medical debt collection
October 02, 2024 / By ICBA
The Consumer Financial Protection Bureau issued an advisory opinion that said debt collectors, which may include third-party “revenue cycle management” companies, are violating federal law when they collect on inaccurate or legally invalid medical debts.
The Consumer Financial Protection Bureau issued an advisory opinion that said debt collectors, which may include third-party “revenue cycle management” companies, are violating federal law when they collect on inaccurate or legally invalid medical debts.
Details: The CFPB said these illegal practices include:
Double-dipping to get paid for services already covered by insurance.
Hounding consumers to pay fake or exaggerated charges.
Misrepresenting consumers’ rights to contest bills.
Collecting on debts without documentation that the amount is actually owed.
More: The advisory is the latest CFPB action on medical debt. The agency this summer proposed a rule to ban medical bills from people’s credit reports.
ICBA View: ICBA in August said the CFPB does not have the statutory discretion to eliminate the use of all medical debt from consumer reports and the proposal would increase the inaccuracy of credit reports and hinder community bank efforts to comply with other regulatory requirements.
Subscribe now
Sign up for the Independent Banker newsletter to receive twice-monthly emails about new issues and must-read content you might have missed.
Sponsored Content
Featured Webinars
Join ICBA Community
Interested in discussing this and other topics? Network with and learn from your peers with the app designed for community bankers.
Subscribe Today
Sign up for Independent Banker eNews to receive twice-monthly emails that alert you when a new issue drops and highlight must-read content you might have missed.
News Watch Today
Join the Conversation with ICBA Community
ICBA Community is an online platform led by community bankers to foster connections, collaborations, and discussions on industry news, best practices, and regulations, while promoting networking, mentorship, and member feedback to guide future initiatives.
Join the Community Example Text
