CFPB Warns on Collection of Inflated, Double-Billed Medical Debt

Debt collectors pursuing inflated medical charges that violate federal and state cost caps or seeking payment for charges already covered by insurance are violating federal law, the Consumer Financial Protection Bureau said.

Collectors are required to validate outstanding medical debt before contacting consumers and provide accurate information about consumers’ ability to contest an alleged debt, the CFPB said in a Tuesday advisory opinion.

The CFPB’s guidance comes amid a broader push against medical debt at the agency and in states around the country.

The CFPB is working on a rule that would bar the reporting of medical debt on ...