On October 1st, 2024, Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra announced actions to reduce the burden of medical debt and address medical debt collection practices in a coordinated event with the White House. The video of the White House event can be found here. Director Chopra’s prepared remarks can be found here.

Prior to the event, the CFPB issued guidance to remind debt collectors of their obligation to comply with the Fair Debt Collection Practices Act and Regulation F’s prohibitions on false, deceptive, or misleading representations in the collection of medical debt. The guidance can be viewed at the following link.

Consumer Financial Protection Bureau: Advisory Opinion

The CFPB also published a Consumer Advisory Opinion which informs consumers what actions they should take if contacted by a debt collector. The recommendations include: (1) requesting a detailed list of charges, (2) negotiating the amount you owe, (3) submitting a complaint, and (4) getting legal help.

This advisory explains debt collectors are liable under FDCPA and Regulation F for unlawful practices when:

  • Collecting an amount not owed because it was already paid.
  • Collecting amounts not owed due to Federal or State law.
  • Collecting amounts above what can be charged under Federal or State law.
  • Collecting amounts for services not received.
  • Misrepresenting the nature of legal obligations.
  • Collecting unsubstantiated medical bills.

The Advisory Opinion serves as both, in part, an interpretive rule and general statement of policy.

Additionally, the CFPB published a blog post highlighting billing issues that occur when non-profit hospitals fail to provide financial assistance. CFPB has received complaints suggesting hospitals may bill and initiate collections against patients who have received or should be eligible for financial assistance.

The CFPB issued a proposed rule to ban medical bills from people’s credit reports in June 2024.  RMAI’s comments to the CFPB proposed rule is accessible here.

There is no confirmation on when the medical debt final rule will be issued.

RMAI encourages its members to share this information with their legal, compliance, and operations employees.

This Member Alert is intended for members of the Receivables Management Association International, is for informational purposes only, and is in no way intended to provide legal advice. Members are encouraged to consult with an attorney of their choice for legal advice concerning this matter.