CFPB Issues Guidelines For Medical Debt Collection

On October 1, the CFPB issued an advisory opinion highlighting that debt collectors engaging in certain practices with respect to the collection of medical debts are strictly liable under the FDCPA and Regulation F.

The Bureau's advisory opinion states that medical debts disproportionately impact groups like young adults, low-income individuals, Black and Hispanic people, veterans, and the elderly. The Bureau states that consumers often accumulate medical debt due to emergencies or acute care situations, which can limit their opportunity to compare prices among providers. Moreover, because the costs for medical services are often not presented upfront, medical billing practices can be confusing. According to the CFPB, this results in many consumers facing higher than normal charges, or for being billed for services they may not have received or for which they should have been eligible for financial assistance.