•Press Release Debt Private Equity
Comment letter to CFPB supports proposed Consumer Financial Protection Bureau Regulation V Amendment
The Private Equity Stakeholder Project (PESP) and the Center for Economic and Policy Research (CEPR) have jointly submitted a public comment letter to the Consumer Financial Protection Bureau (CFPB) regarding the proposed amendment to Regulation V, which implements the Fair Credit Reporting Act (FCRA).
This proposed rule aims to address the growing issue of medical debt by limiting creditors from obtaining or using information on medical debts for credit eligibility determinations. It would also prohibit consumer reporting agencies from giving creditors certain information on medical debts.
PESP and CEPR commend the CFPB’s proposed rule change as a critical step towards protecting patients from the unjust impacts of medical debt. The proposed amendment is seen as one of multiple solutions needed to mitigate the real harms resulting from inaccurate medical debt data held by private equity-owned debt collectors and others.
The comment letter aims to highlight the urgent need for regulatory changes to protect consumers from the predatory practices of private equity-owned debt collectors and others. PESP and CEPR urge the CFPB to adopt the proposed amendments to Regulation V to ensure more accurate reporting of medical debt and to reduce the financial burden on vulnerable populations.
“The proposed rule by the CFPB is a necessary step in addressing the real harms caused by inaccurate medical debt data held by private equity-owned debt collectors,” said Chris Noble, PESP policy director. “We must protect patients from unjust financial impacts and ensure that their credit reports reflect accurate information. The growing role of private equity in the medical debt crisis cannot be ignored. It is crucial that regulatory measures are implemented to mitigate the aggressive and often predatory practices these firms employ.”
“It’s bad enough that so many Americans go into debt to get necessary medical care — now they have to worry that debt collectors will punish them by damaging their credit. Private equity exacerbates this dynamic by striving to extract as much profit as they can, as quickly as they can,” said Brandon Novick, Program Outreach Assistant at the Center for Economic Policy & Research. “This new CFPB rule will help stop aggressive debt collectors from weaponizing medical debt and placing even greater burdens on financially-strapped American families.”
