The undersigned 277 health care, consumer, civil rights, labor, legal services, and community organizations and academics write to urge you to oppose S.J. Res. 36 (Rounds) and H.J. Res. 74 (Norman), resolutions under the Congressional Review Act to rescind the Consumer Financial Protection Bureau’s (CFPB) final rule to remove medical debt from credit reports. We also oppose any attempt to retract the CFPB’s advisory opinion reminding debt collectors that it is unlawful to attempt to collect medical debt that is not owed, among other unlawful practices. Proposals to lessen medical debts’ credit impacts are broadly supported on a bipartisan basis.
More than 100 million people owe at least $220 billion in medical debt and about 15 million people have medical debt on their credit reports. Medical debt accounts for 43% of balances to third-party debt collectors. Medical bills are often confusing and inaccurate, disputed nearly three times as frequently as credit card debt.
Medical debt is unlike other debt because people do not plan to get sick or injured. Studies have shown that medical debt is not an accurate predictor of whether someone will repay their loan payments and should not be considered in credit eligibility determinations. The CFPB’s rule removing medical debt from credit reports improves access to affordable credit; reduces impacts on communities with lower incomes and less health insurance, especially in the South and communities of color; and reduces pressure to pay incorrect medical debts.
The CFPB’s guidance under the Fair Debt Collection Practices Act makes clear that the FDCPA prohibits collecting charges that have already been paid, are prohibited under the federal No Surprises Act, are for services that a consumer did not receive, or cannot be verified. The guidance also states that it is unlawful to falsely represent that a medical bill is final and legally owed.
We urge you to support these common sense measures to protect the 100 million people who have or are being pursued for medical debts. Oppose S.J. Res. 36 and H.J. Res. 74.
See all resources related to: Consumer Protection Regulation, Debt & Bankruptcy