Protect Consumers from Illegal Medical Debt Collection – Reject H.J. Res. 220

Protect Consumers from Illegal Medical Debt Collection – Reject H.J. Res. 220

H.J. Res. 220, a Congressional Review Act resolution introduced on Nov. 13, 2024 by Rep. Gary Palmer (AL-6), seeks to overturn a Consumer Financial Protection Bureau (CFPB) advisory opinion on medical debt collection. The Fair Debt Collection Practices Act (FDCPA) is the long-established federal law that protects and empowers consumers to fight back against illegal and abusive methods often used to collect on consumer debt. The advisory opinion reminds debt collectors that tactics to collect on medical debt, such as going after patients who were billed for services more expensive than the ones they received, or pursuing payment for medical bills that were already paid, are unlawful under the FDCPA.

The advisory opinion explains how consumers strapped with medical bills are shielded from misconduct at the hands of debt collectors. It also ensures that law-abiding debt collectors are aware of their existing responsibilities under the law when collecting on medical debt. Consumers and patients burdened by medical debt deserve to be made aware of the full protections available to them under the law.

Medical debt collection is a nationwide problem

• According to the CFPB’s findings, around 100 million Americans owe close to $220 billion in medical debt.
• Medical debt is the number one source of debt collections and is reported by consumers as a major cause of physical and financial stress.

Medical bills are often confusing and inaccurate

• The U.S. health care billing system is extremely complex, and consumers are routinely double billed, overcharged for services, or billed for services they did not receive.
• Due to the issues with medical billing, debt collectors often go after consumers for bills that they do not owe or have already been paid.

The advisory opinion makes clear that medical debt collectors must follow the law

• The CFPB reminds debt collectors that they cannot engage in unfair or deceptive practices under the FDCPA to collect on medical debts, including:
  • Collecting on a debt that has already been paid
  • Collecting on falsified bills for services that a consumer didn’t receive
  • Collecting on medical debts that they cannot verify the consumer owes
  • Misleading consumers that a bill cannot be negotiated or disputed when it can be.

H.J. Res. 220 would eliminate much needed clarifications for consumers and patients burdened by medical debt.  Congress must reject it.