US watchdog issues warning to medical debt collectors

[BumRushDaShow]

Source: Reuters

October 1, 2024 2:51 PM EDT Updated 4 hours ago


Oct 1 (Reuters) - The top U.S. consumer financial watchdog on Tuesday warned medical debt collectors they face enforcement action by federal regulators if they illegally attempt to collect on inaccurate or legally invalid medical debts.

Around 100 million Americans currently owe $220 billion in medical debt, according to the U.S. Consumer Financial Protection Bureau, which issued legal guidance on what it said were illegal debt collection tactics.

THE TAKE

The CFPB, the federal agency that industry loves to hate, is making its latest move to clamp down on revenue-generating practices it says are predatory.

With a large segment of the electorate angered by rising prices in a tight election year, Vice President Kamala Harris has also spearheaded the CFPB's efforts to remove medical debt from consumer credit reports.

Read more: https://www.reuters.com/business/healthcare-pharmaceuticals/us-watchdog-issues-warning-medical-debt-collectors-2024-10-01/

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Link to CFPB PRESS RELEASE - CFPB Director Chopra Joins White House Event on Medical Debt

Link to CFPB Consumer ADVISORY - Consumer advisory: Pause and review your rights when you hear from a medical debt collector

Link to CFPB Final RULE (PDF) - Debt Collection Practices (Regulation F); Deceptive and Unfair Collection of Medical Debt

[Clouds Passing]

1. EFF medical debt collectors. We should have healthcare for all.

[ck4829]

2. Really, they are the least necessary sector of our economy.

[ck4829]

5. A completely useless sector

And "Medical debt collector data breach", what's up with that?

[Farmer-Rick]

3. When my spouse died

I had a ton of their medical debt to pay off. It really pissed me off since they failed so miserably in their job to keep my spouse alive. But I still had to pay for their failed medical response.

And for those who say you don't have to pay for a spouse's medical bills when they die, look up the Doctrine of Necessaries.

Luckily I have good health insurance. But still, 20% of 100's of thousands is a lot.

[ck4829]

4. So they got paid for failing? Funny how this "doctrine" doesn't apply to pain and suffering.