On 1/13/2022, the CFPB released a bulletin reminding debt collectors and credit bureaus of their legal obligations in light of the No Surprises Act, which protects consumers from certain unexpected medical bills. The bulletin advises credit bureaus that the accuracy and dispute obligations imposed by the FCRA apply with respect to debts stemming from charges that exceed the amount permitted by the No Surprises Act.
In its release, the CFPB said that it will investigate claims and take action against companies that attempt to collect or report or furnish consumer information about debts stemming from charges that exceed the amounts permitted under the No Surprises Act. In a statement by CFPB Director Rohit Chopra, he said that too many Americans have been shocked by surprise medical bills and forced to pay up through credit report coercion.
Concerns over surprise medical expenses and medical debt have been magnified by the current pandemic. According to the Federal Reserve Board’s report, 17% of adults had major, unexpected medical expenses amounting between $1,000 and $1,999, and 23 percent of adults went without medical care due to an inability to pay.
The bulletin issued by the CFPB includes the following reminders to debt collectors, information furnishers, and credit bureaus:
Consumer financial protection law prohibits debt collectors from misrepresenting the character, amount, or legal status of any debt including misrepresenting that a consumer must pay a debt stemming from a charge that exceeds the amount permitted by the No Surprises Act. Additionally, debt collectors are prohibited from using unfair or unconscionable means to collect or attempt to collect any debt.
Many debt collectors furnish information about unpaid medical debts to credit bureaus. Furnishers must have reasonable written policies and procedures regarding the accuracy and integrity of consumer information provided to credit bureaus and credit bureaus must follow reasonable procedures to assure the maximum possible accuracy of information contained in the consumer report.
For furnishers and credit bureaus, the accuracy and dispute obligations imposed by federal consumer financial protection law apply with respect to debts stemming from charges that exceed the amount permitted by the No Surprises Act.
Read CFPB’s full release here.
