CFPB guidance on medical debt collection practices

The CFPB yesterday issued an Advisory Opinion on "Debt Collection Practices (Regulation F); Deceptive and Unfair Collection of Medical Debt," to prevent families from being targeted by illegal medical debt collection tactics. The advisory opinion clarifies that debt collectors, which may include third-party “revenue cycle management” companies, are violating federal law when they collect on inaccurate or legally invalid medical debts. These illegal practices include double-dipping to get paid for services already covered by insurance, hounding consumers to pay fake or exaggerated charges, misrepresenting consumers’ rights to contest bills, and collecting on debts without documentation that the amount is actually owed. The CFPB’s action aims to protect consumers from careless or predatory practices that can lead to inflated healthcare costs.

• CFPB press release
• Publication update: Published in the Federal Register at 89 FR 80715 on 10/4/2024, with applicability from 12/3/2024.