Hospitals, insurance companies, and debt collectors need to step up their communication efforts to prevent the illegal collection of medical debts that have been previously paid or covered by providers’ charity care programs, according to the CFPB in its report to Congress on the status of the FDCPA, issued on September 5, 2024. Communication to consumers from debt collectors should provide more specific information about debts to enable consumers to identify the accounts on which collectors seek payment, as well. The resulting harm to consumers—the medical debt appearing on the consumer’s credit report—puts the consumer in an untenable situation that could have been avoided if more information were shared, and if the hospitals did not set such a high bar for eligibility for their financial assistance programs.
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In this episode of FCRA Focus, host Kim Phan is joined by fellow Troutman Pepper partner Stefanie Jackman and Michelle Macartney, managing partner and chief compliance officer at Bridgeforce. Together, they delve into the complexities of reporting collections activity to consumer reporting agencies. Michelle shares her extensive experience in consumer reporting compliance, offering valuable insights into the challenges and best practices for maintaining data accuracy and handling disputes. The discussion also covers the latest CFPB draft rulemaking on medical debt and its implications for consumer reporting agencies, end users, and furnishers. Tune in to learn how to navigate the intersection of FCRA and debt collection as well as discover effective compliance strategies to mitigate risks in today’s regulatory environment. Don’t miss this informative episode packed with practical tips and industry updates!
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On August 15, a coalition of community, civil rights, consumer, and advocacy organizations released a letter urging both presidential candidates to support the CFPB’s ongoing efforts to combat “junk fees.” In a letter addressed to Vice President Harris and former President Trump, the groups emphasized the need for enforcement action and continued regulation of credit card fees, overdraft fees, non-sufficient funds fees and other similar types of fees. The letter highlighted how these fees may affect lower-wage workers, people of color, and small businesses disproportionately and claimed they discourage consumers from obtaining “mainstream” financial products, redirecting them into costlier “fringe” and “predatory” financial services.
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