October 4, 2024

CFPB Warns Medical Debt Collectors to Stick to the Law

Cozen O'Connor

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Cozen O'Connor

The CFPB issued guidance reminding debt collectors of their obligation to comply with the Fair Debt Collection Practices Act (the “FDCPA”) and Regulation F’s prohibitions on false, deceptive, or misleading representations and unfair or unconscionable behavior in connection with the collection of medical debt.
In the guidance, the CFPB clarifies that debt collectors are strictly liable under the FDCPA and Regulation F for violating federal law when they collect on inaccurate or invalid medical debts, including bills that have already been paid; that exceed legal limits because the amount surpasses federal or state caps; that include false or exaggerated services; that are unsubstantiated by documentation; and that include misrepresentations of consumers’ rights to contest bills.
The CFPB also published a consumer advisory that outlines steps consumers can take if they have received collection notices for medical bills.

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