The Consumer Financial Protection Bureau’s (CFPB) recent request for information (RFI) regarding the usage of medical credit cards and other lending products for health care expenses has been met with notable feedback from industry stakeholders. Among these respondents are the American Bankers Association (ABA), Association of Credit and Collection Professionals (ACA International), U.S. Chamber of Commerce, Synchrony Bank, and the National Consumer Law Center (NCLC). (Read More)
Banking industry groups have made it clear in their comment letters that they believe there are areas where the CFPB should restrict its regulatory reach. Specifically, they believe healthcare payment regulations should be primarily enforced by existing healthcare authorities and regulators, insinuating that the CFPB should reduce its involvement in the healthcare industry’s financial interactions.
The ABA, in its submission, noted the importance of differentiating between financing offered by healthcare providers and typical consumer credit. Likewise, ACA International suggested that the legal obligations of collection agencies differ significantly from other businesses that deal with consumer debt collection, thus requiring different regulatory approaches.
The NCLC, on the other hand, urged the CFPB to look critically at consumer abuses involving medical debt collection and financial products. They stressed the importance of not exempting certain types of debt from the Fair Debt Collection Practices Act, including medical debt collected by healthcare providers and non-profit entities.
In brief, the RFI has initiated a discussion on the role of the CFPB concerning financial practices within the healthcare industry. While banking industry groups are advising the bureau to cede primary oversight to existing healthcare authorities, consumer advocacy groups are emphasizing the importance of stringent regulation to prevent abuses and protect consumers.