Join us on LinkedIn Follow us on Twitter Like us on Facebook Follow us on Instagram
 
  OCTOBER RESEARCH STORE Already a subscriber? LOG IN
AddControlToContainer_DynamicNavigation6

CFPB report highlights UDAAP violations in medical debt collection

Email A Friend Printer Friendly Version
0 comments
Consumer Protection, Inside the Beltway
Friday, December 8, 2023

The Consumer Financial Protection Bureau (CFPB) released its annual report to Congress on the Fair Debt Collection Practices Act (FDCPA), focusing on challenges faced by American families dealing with medical debt collectors. The report cites 8,500 complaints in 2022 from servicemembers, older adults and other consumers regarding medical debt collections and highlighted efforts by the CFPB and states to halt the pursuit of inaccurate or unjust medical bills.

The CFPB’s report summarizes activities by the CFPB and other federal agencies in managing debt collection, including actions by the Federal Trade Commission (FTC) to safeguard small businesses from unfair debt collection practices.

“Protecting small businesses, in addition to individual consumers, is a high priority for the [FTC],” the report states. “While some statutes, including the FDCPA, involve household debt, the FTC Act empowers the FTC to take action to protect small business consumers. These actions highlight the type of deceptive and unfair debt collection conduct that exists regardless of whether the victim is a small business or individual consumer and illustrate the measures the FTC has undertaken to combat such conduct.”

With respect to common consumer complaints, the report emphasized issues reported about medical bills inaccurately pursued or not owed. Complaints revealed instances where bills were already paid, incorrect amounts were collected or collections began long after care was provided. It also pointed out instances in which medical bills appeared on credit reports without prior consumer contact. The report noted many servicemembers and older adults raised concerns despite having insurance coverage.

“Complaints about attempts to collect a debt that the consumer reports is not owed has been the predominant issue selected by consumers since the CFPB began accepting debt collection complaints in 2013,” the report states. “Most consumers who stated that the debt is not owed report that the debt is not their debt (51 percent). Consumers described being contacted about debts they do not recognize, attempts to collect a debt that belongs to someone else, and being in collections for services or products they did not receive.”

In about 30 percent of debt collection complaints, consumers reported the debt resulted from identity theft and they often learned about the debt after reviewing their credit report or after receiving an alert from a credit monitoring service.

“Many of these consumers described completing an identity theft report and contacting the collectors listed on their credit report in an attempt to remove the debt,” the report continues. “In addition to these issues, consumers also complained that their debt was paid (16 percent) or was discharged in bankruptcy and is no longer owed (3 percent).”

The report outlines violations by medical debt collectors, including attempts to collect erroneous or inflated bills in violation of federal laws. It also underscores actions states can take to more effectively enforce debt collection laws to protect consumers without federal intervention.

Additionally, the CFPB issued reminders about legal obligations, including a bulletin on the No Surprises Act and advisories addressing unlawful nursing facility debts and prohibited fees. It supported state-level actions and offered consumer resources like sample letters for interactions with debt collectors.

Today's other top stories
CFPB moves to dismiss medical debt rule lawsuit
CFPB plans to deprioritize ‘Buy Now, Pay Later’ lending activities
OCC issues interim final rule on M&A review process, seeks comments
AI Without the Jargon: A Mindset for the Future (podcast)
Frontier Credit Union to acquire Montana-based community bank


COMMENT BOX DISCLAIMER:
October Research is not responsible for the comments posted on its websites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments.
Comments:

Be the first to leave a comment.

Leave your comment
Please enter a comment.
CAPTCHA Validation
CAPTCHA
Code:
Please enter the word displayed in the image above. Please enter the word displayed in the image above.
: 
Please enter your name.
: 
Please enter your email address.
This field must contain a valid email address.
Your Email is for reporting purposes only. It will NOT be displayed.
Popularity:
This article has been viewed 2202 times.

Monthly Newsletter

Dodd Frank Update May 2025

Cover Story:

Wolters Kluwer experts analyze shifts in banker compliance concerns


News by Topic   News by Edition   News by Agency   News by Industry   In-depth Reports   Events
Banking
Case Law
Conference Coverage
Consumer Protection
Data Privacy
Financial Stability
Industry Spotlight
Legislation
Nonbank Financial
The TRID Journey
 
Dodd Frank Update April 2025
Dodd Frank Update May 2025
Archives
 
CFPB NCUA
CFTC OCC
FDIC OFR
FHFA SEC
FRB States
FSOC Treasury
FTC  
 
Appraisal
Broker-Dealer
Community Banks & Credit Unions
Land Title
Mortgage
Payday Lending
 
2025 State of the Industry
CRA and Affordable Housing
2025 State of the Industry
Who's My Regulator?
Fair Lending
Mortgage Technology
Marketing Compliance for Lenders
Archives
 
National Settlement Services Summit (NS3)
Women's Leadership Summit (WLS)
Webinars

Library   About   Subscribe   Other Publications
Data Privacy Vault Court Actions
Keys to Real Estate podcast Enforcement Documents
Blog - Tuesdays with Mary Guidance Documents
1071 Compliance Guide White Papers
eClosing Solutions Showcase Position Papers
Executive Interview Series Legislation
Lender Associations Regulations
The Dodd-Frank Act Reports, Studies and Surveys
Dodd-Frank Summary & History Federal Register Notices
 
Dodd Frank Update
Contact / Editors
Advertise
Request a Media Kit
Social Media
Are You An Expert?
Subscriber Agreement
 
Subscriptions
Free Email Updates
Try a Free Edition
 
The Title Report
The Legal Description
Valuation Review
RESPA News
Copyright © 2011-2025 Dodd Frank Update
An October Research, LLC publication
3046 Brecksville Road, Suite D, Richfield, OH 44286
(330) 659-6101, All Rights Reserved
www.doddfrankupdate.com | Privacy Policy
VISIT OUR OTHER WEBSITES
> The Legal Description
> RESPA News
> The Title Report
> Valuation Review
> NS3 The Summit
> Women's Leadership Summit
> October Research, LLC
> The October Store


Loading... Loading...
Featuring:
  • Delivery 3X a week plus breaking news as it happens
  • Comprehensive title insurance industry news
  • Recent acquisitions, mergers, real estate stats
  • Exclusive in-depth coverage of the industry's hottest stories
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Comprehensive Dodd-Frank coverage
  • The latest information from the CFPB
  • Full coverage of Congressional hearings
  • Updates on all agency actions
  • Analysis of controversial provisions
  • Release of newest studies and reports
Sign up today and...
  • Be one of the first to know where NS3 is being held
  • Learn about NS3 speakers and sessions
  • Save on registration with Super-Early Bird rates
  • Discover the networking opportunities NS3 offers
  • Find out if CE credits will be offered for your area
  • And much more
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Preview the latest RESPAnews.com Top Story
  • RESPA related headline news
  • Quote of the Week
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Legal, regulatory and legislative information impacting the settlement services industry
  • News from HUD, Congress, state legislatures and other regulatory agencies
  • Follow the lobbying efforts of all the major national real estate services organizations.
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • The industry's only full-time newsroom
  • Relevant, up-to-date appraisal industry news
  • Covering the hottest stories and industry trends
NEWS BY TOPIC
EDITION
AGENCY
IN-DEPTH REPORTS
INDUSTRY
EVENTS
LIBRARY
EMAIL UPDATES
ABOUT
SUBSCRIBE
Banking
Case Law
Conference Coverage
Consumer Protection
Data Privacy
Financial Stability
Industry Spotlight
Legislation
Nonbank Financial
The TRID Journey
Current Edition
April 2025
March 2025
February 2025
Archives
CFPB
CFTC
FDIC
FHFA
FRB
FSOC
NCUA
OCC
OFR
SEC
States
Treasury
2025 State of the Industry
Real Estate Compliance Outlook
CRA and Affordable Housing report
Who's My Regulator?
Fair Lending
Marketing Compliance for Lenders
Archives
Appraisal
Broker-Dealer
Community Banks & Credit Unions
Land Title
Mortgage
Payday Lending
National Settlement
Services Summit (NS3)
Women's Leadership
Summit (WLS)
Webinars
CFPB's Shake-Up & Its Impact on You
2025 Economic Outlook Series
Data Privacy Compliance
Fintech Partner Compliance
Strategies post-NAR settlement
Industry and Regulatory Outlook
Securing Your Cyber Network
Compliant Marketing Tactics
2024 Economic Forecast Series
Webinar Archives
Data Privacy Vault
Keys to Real Estate podcast
Blog - Tuesdays with Mary
1071 Compliance Guide
eClosing Solutions Showcase
Executive Interview Series
Lender Associations
The Dodd-Frank Act
Dodd-Frank Summary
Court Actions
Enforcement Documents
Guidance Documents
White Papers
Position Papers
Legislation
Regulations
Reports, Studies and Surveys
Federal Register Notices
Proposals
Final Rules
GAO
Agency
Contact Us
Advertise
Request a Media Kit
Social Media
Are You An Expert?
Subscriber Agreement