EPIC Praises CFPB’s Proposal to Ban Medical Debt from Credit Reports 

In comments to the Consumer Financial Protection Bureau, EPIC expressed support for the CFPB’s proposed rules to largely prohibit the inclusion of medical debt information on credit reports. The proposed rules would protect the privacy of consumers’ sensitive medical information and promote fairness and accuracy in credit reporting.  

“Given the serious financial and privacy risks that can be caused by the inclusion of medical debt on credit reports, the burden to avoid or correct erroneous medical debts should not be placed on individual consumers,” EPIC wrote. “Navigating medical debt collection systems is difficult, especially given the added stress of recovering from the medical issues which resulted in debt.”  

EPIC also emphasized that the CFPB has legal authority to finalize the proposed rules. The Fair Credit Reporting Act of 2003 (FACTA) is the law at the core of this rulemaking. EPIC found that, “In congressional debates on FACTA, multiple members of Congress stated that the law should include strong privacy protections for medical information, including financial information on credit reports.” By finalizing these rules, the CFPB would fulfill Congress’s privacy-enhancing goals reflected in FACTA. 

EPIC routinely calls on the CFPB to strengthen privacy protections for consumers. Recently, EPIC filed comments on the CFPB’s Personal Financial Data Rights Rulemaking and filed comments on the CFPB’s proposed revisions to Fair Credit Reporting Act rules, which among other changes would clarify that data brokers must comply with FCRA.