🚫New CFPB Rule Prohibits Medical Debt in Credit Decisions
Prohibition on Creditors and Consumer Reporting Agencies Concerning Medical Information (Regulation V)
Summary
The Consumer Financial Protection Bureau (CFPB) is issuing a final rule amending Regulation V, which implements the Fair Credit Reporting Act (FCRA), concerning medical information. The FCRA prohibits creditors from considering medical information in credit eligibility determinations. The CFPB is removing a regulatory exception that had permitted creditors to obtain and use information on medical debts notwithstanding this statutory limitation. The final rule also provides that a consumer reporting agency generally may not furnish to a creditor a consumer report containing information on medical debt that the creditor is prohibited from using.
Agencies
- Consumer Financial Protection Bureau
Business Impact
$$ - Med
The rule impacts creditors and consumer reporting agencies by prohibiting the consideration of medical information in credit decisions. This limits how businesses assess creditworthiness, potentially affecting their lending processes and risk management strategies. Additionally, the removal of the financial information exception requires businesses to adapt to stricter compliance and regulatory frameworks starting March 17, 2024.