The Consumer Financial Protection Bureau said it is beginning a rulemaking process to remove medical bills from Americans’ credit reports.
Details: The CFPB outlined proposals under consideration to bar credit bureaus from including medical debts and collection information on consumer reports, stop creditors from relying on medical bills for underwriting decisions, and prevent debt collectors from using the credit reporting system to pay medical debts.
ICBA View: ICBA has raised concerns about the impact on compliance burden of expanding the entities covered as consumer reporting agencies. In a July comment letter, ICBA said:
The CFPB should hold data brokers and aggregators accountable under the Fair Credit Reporting Act by requiring disclosures to consumers about the information they collect and use.
However, because data brokers do not meet the definition of a consumer reporting agency, community banks do not qualify as furnishers.