Public Comment on CFPB’s Proposed Rule on the Prohibition on Creditors and Consumer Reporting Agencies Concerning Medical Information

This comment letter addresses the Consumer Financial Protection Bureau's proposed rule on the Prohibition on Creditors and Consumer Reporting Agencies Concerning Medical Information (Regulation V).

Our statement includes the following key points:

1. By prohibiting the use of medical debt information on credit reports as a factor in credit eligibility determinations, the proposed rule could benefit consumers by improving their access to credit and other economic outcomes tied to credit histories.
2. The policy might also have unintended consequences, such as providers increasing efforts to obtain up-front payment before delivering care, limiting access to care, raising prices, or encouraging payment with credit cards.
3. Extending the rule to cover medical debt from credit cards and loans would reduce incentives to promote financial products that leverage the credit reporting system as a means of inducing payment.
4. The proposed reporting changes do not affect the underlying debt consumers owe to health care providers, and many consumers will still be adversely affected by medical debt.
5. Fully addressing the problem of medical debt will likely require policies that expand health insurance and reduce cost-sharing for households with low and moderate incomes. Efforts to promote competition and reduce health care prices can complement these policies in reducing medical debt.

In this comment, we describe the research evidence supporting these statements.