On September 5, 2024, the CFPB issued its annual report on debt collection, which highlights aggressive and illegal practices in the collection of medical debt and rental debt. The report highlights issues with real estate software inflating rental debt and debt collectors pursuing medical bills already covered by non-profit aid, as well as insufficient financial assistance for low-income medical bills.
In terms of medical debt collection, the complaints submitted by consumers and the CFPB’s own research show that debt collectors:
Attempt to collect already paid medical bills or bills eligible for financial assistance; and
Aggressively pursue patients for bills arising from medical payment products.
In the area of rental debt collection, the CFPB received more than 1,700 complaints since August 2023. The complaints submitted by consumers and the CFPB’s own research show that the infusion of consumer financial products and services into the rental market raises risks for renters, including improper debt collection due to illegal price fixing and tacked on rental fees.
The CFPB said that it is taking steps to ensure that debt collectors follow consumer financial protection laws, including the Fair Debt Collection Practices Act and the Fair Credit Reporting Act. Additionally, the Bureau has brought enforcement actions against debt collectors for their efforts to collect on unsubstantiated debt, unlawfully threatening legal action against consumers, and other violations.
Read the CFPB’s news release here.
The full report can be found here.
