Many people throughout Maryland know how burdensome it is to have medical debt. Whether you’re paying it off or struggling to make that happen, this situation can add undue stress to your life. However, recent news shows that one government agency has its sights set on medical debt collectors.
A nationwide medical debt problem
As you know, debt can have a major effect on someone’s ability to rent or own a home or vehicle. In some cases, having medical debt can even negatively affect someone’s ability to get a job. Currently, an estimated 100 million adults in the United States are dealing with the burden of medical debt. Medical debt can also be a contributing factor as to why someone must file for bankruptcy.
Regulators push back against medical debt collectors
The Consumer Financial Protection Bureau (CFPB) began in 2010 when then-President Barack Obama signed the legislation that created this agency. The main priority of the CFPB was to watch out for people instead of lenders, big banks and investment houses. Beginning in 2022, this consumer protection agency has begun to come down on medical debt collectors in the form of investigations and penalties.
The CFPB is currently working to have medical debt barred from consumer credit reports. Current estimations claim that the CFPB will have its rules regarding eliminating medical debt from consumer credit reports brought forward in late 2024. This agency reported that medical debt isn’t often an indicator of someone’s ability to pay off other types of debts timely.
Many medical debt collectors nationwide must be careful how they attempt to collect debt from people. Even medical care facilities, including nursing homes and hospitals aren’t exempt from facing the CFPB in court.