On August 12, the California Attorney General (AG)
submitted a
comment letter in support of the CFPB’s Proposed Rule to ban using medical information for credit eligibility determinations.
As covered by InfoBytes, the proposed rule would amend the FCRA to remove the medical financial information exception and limit credit reporting of medical debt. The AG noted how the CFPB’s efforts aligned with California’s
SB 1061, which also targeted the exclusion of medical debt from credit scores.
This was not the first time the AG supported medical payment reforms; he previously wrote to federal agencies urging them to adopt consumer protections for patients using medical credit cards and installment loans to pay for healthcare-related bills (covered by InfoBytes here). The AG suggested the CFPB expand the definition of “medical information” to include all forms of medical bill payments made by or on behalf of patients for medical care, services, or devices. He argued this broader definition would ensure that all medical-related expenses, regardless of the payment method, were excluded from consumer credit reports.
The proposal also addressed the feasibility of financial institutions distinguishing between medical and non-medical debt. Credit card companies can exclude medical debt from credit reports through their merchant systems, suggesting these proposed changes might be implemented more easily.
