When the Consumer Financial Protection Bureau (CFPB) issued its final rule updating Regulation V of the Fair Credit Reporting Act (FCRA) focusing on medical debt, the industry quickly reacted with a CFPB Regulation V Lawsuit. Shortly after the announcement for the final rule was made, the Consumer Data Industry Association (CDIA) and Cornerstone Credit Union League filed a lawsuit challenging the rule in the U.S. District Court for the Eastern District of Texas, Sherman Division.
The new CFPB Regulation V lawsuit states, “It is black letter law that an agency cannot prohibit through regulations what Congress has expressly permitted by statute. Because the [f]inal [r]ule contravenes the statute, it should be vacated.”
In addition to the CDIA and Cornerstone Credit Union League, ACA International is joining the fight against this damaging rule and will be filing a lawsuit against the CFPB to prevent the rule from taking effect. The ACA is challenging the rule’s impact on healthcare providers’ ability to recover revenue owed for past care and their ability to provide future care to patients.
Republicans in Congress have also joined in on pushing back against the rule. Nearly two dozen House Financial Services Republicans sent a letter opposing the rule last year. On January 7, 2025, House Financial Services Chairman French Hill issued a statement blasting CFPB Director Chopra, stating the rule “will drive up costs to any American seeking medical care and have a devastating impact on consumers’ access to healthcare in rural areas.”
Americollect is working with industry leaders to fight for your rights as providers to recover revenue owed for the amazing care you provide to your patients. We will stay on top of this and other CFPB Regulation V lawsuits and share any new information as it comes. If you have questions about how this may impact your facility, reach out to our Ridiculously Nice team.
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