CFPB Proposes Rule Addressing Medical Debt in Credit Reporting

  • The CFPB issued a request for comment on its proposed Prohibition on Creditors and Consumer Reporting Agencies Concerning Medical Information (Regulation V), which would amend regulations implementing the Fair Credit Reporting Act (FCRA) as applied to medical information.
  • The proposed rule would eliminate an exception that permits lenders to obtain and use information about medical debt to make credit eligibility determinations, except under narrow circumstances; prohibit credit reporting companies from including medical debt on credit reports sent to creditors when creditors are prohibited from considering it; and prohibit lenders from repossessing medical devices, such as wheelchairs or prosthetic limbs, if consumers cannot repay the loans.
  • Comments must be received on or before August 12, 2024.