The interview sheds light on the unintended consequences of the proposed rule that the bureau isn’t considering.
06/14/2024 3:00 P.M.
1 minute read
CBS News Live invited Leah Dempsey, shareholder at Brownstein Hyatt Farber Schreck LLP, to share her insights on the impact of the Consumer Financial Protection Bureau’s proposal to remove medical debt from credit reports during an interview this week.
During the segment, Dempsey discussed the political undertones of the CFPB’s proposal, but more importantly the impact it will have on debt collection agencies and lenders by suppressing information about credit.
If this proposal becomes a rule, borrowers with a medical debt may also receive a loan they cannot afford without a lender seeing their complete credit report, Dempsey explained.
She added that stakeholders understand the sensitivity to medical debt and its impact on patients, but noted there are a variety of unplanned expenses consumers face and the CFPB’s proposed rule doesn’t look at unintended consequences such as hospitals having to collect payments upfront—which presents challenges for patients already facing financial struggles—and the impact on access to affordable care at rural hospitals.
Access the complete interview here.
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