All in FCRA

CFPB Proposes to Remove Medical Bills from Credit Reports

Adam Witmer
Regulatory Update, FCRA

On June 11, 2024, the CFPB proposed a rule that would remove medical bills from most credit reports, increase privacy protections, help to increase credit scores and loan approvals, and prevent debt collectors from using the credit reporting system to coerce people to pay. According to CFPB Director Rohit Chopra, medical bills on credit reports too often are inaccurate and have little to no predictive value when it comes to repaying other loans.

FDIC’s Settlement with Bank of England for Violations of Consumer Protection Laws

Adam Witmer
Regulatory Update, RESPA, HMDA, FCRA

On May 17, 2024, the FDIC announced that a settlement was reached with Bank of England, England, Arkansas, for violations of Section 5 of the Federal Trade Commission Act, the Real Estate Settlement Procedures Act (RESPA), the Fair Credit Reporting Act (FCRA), and the Home Mortgage Disclosure Act (HMDA). Nine former employees of the Bank of England have also stipulated to individual enforcement actions.

CFPB Shuts Down Commonwealth Financial Systems for Illegal Debt Collection

Adam Witmer
Regulatory Update, FCRA

On December 15, 2023, the CFPB took action against a medical debt collector, Commonwealth Financial Systems, for illegally trying to collect unverified medical debts after consumers disputed the validity of the debts. With its headquarter in Dickson City, Commonwealth Financial Systems is a nonbank corporation engaged in  third-party debt collection where it specializes in the collection of past-due medical debts and furnishes information about consumer collection accounts to consumer reporting companies. 

CFPB Proposes Rule Removing Medical Bills from Credit Reports

Adam Witmer
Regulatory Update, FCRA

On September 21, 2023, the CFPB announced it is beginning a rulemaking process to remove medical bills from Americans’ credit reports. The CFPB outlined proposals under consideration that would help families financially recover from medical crises, stop debt collectors from coercing people into paying bills they may not even owe, and ensure that creditors are not relying on data that is often plagued with inaccuracies and mistakes.

CFPB Sues Snap Finance for Deceiving Consumers and Making False Threats

Adam Witmer
Regulatory Update, FCRA, Regulation E, Regulation Z

On July 19, 2023, the CFPB sued lease-to-own finance company Snap Finance for deceiving consumers, obscuring the terms of its financing agreements, and making false threats. According to the CFPB, Snap Finance’s practices violate the Consumer Financial Protection Act, the Truth in Lending Act, the Electronic Fund Transfer Act, and the Fair Credit Reporting Act. The CFPB is seeking monetary relief for consumers, an end to Snap Finance’s illegal practices, and a civil money penalty.

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