CFPB Rule to Block Medical Debt Will Provide Some Relief for Working Families

January 7, 2025

CFPB Rule to Block Medical Debt Will Provide Some Relief for Working Families

WASHINGTON, D.C. - The Consumer Financial Protection Bureau (CFPB) finalizeda rule to block medical debt owed by patients from credit reports and prohibit banks and lenders from using medical information when making lending decisions.

Public Citizen's Health Care Policy Advocate Eagan Kemp released the following statement:

"The CFPB has taken an important and encouraging step to reduce the impact of medical debt that burdens the lives of tens of millions of Americans. For too long, working families have drowned in debt due to a medical emergency or chronic illness, unable to apply for housing, find a new job or start a small business. But, only weeks out from Inauguration Day, we are keeping close eyes on the incoming administration and a hostile Congress which could claw back these protections and continue to put profits ahead of patients."

"We must also remember that medical debt is a uniquely American problem. Comparably wealthy countries guarantee access to health care for all who live there without burdening them with unnecessary costs. Only the United States allows corporate greed to run rampant in health care: health insurance companies deny medically necessary care, and Big Pharma charges Americans the highest prices in the world for prescription drugs. Our for-profit health care system leaves many Americans in crushing debt and poor health. We need Medicare for All to finally guarantee that every American can get the care they need when they need it."