Top U.S. Watchdog Warns Medical Debt Collectors of Enforcement Action - $220 Billion in Medical Debt Owed by Americans
The top U.S. consumer financial watchdog issued a warning to medical debt collectors about illegal collection tactics for inaccurate or legally invalid medical debts. With around 100 million Americans owing a whopping $220 billion in medical debt, the Consumer Financial Protection Bureau (CFPB) is cracking down on predatory practices.
In a move that industry dislikes, the CFPB aims to protect consumers from unfair debt collection practices. Vice President Kamala Harris is also leading efforts to remove medical debt from consumer credit reports amid rising prices and a tight election year.
CFPB Director Rohit Chopra highlighted the errors in medical billing, such as inflated charges, double billing, and fees for services not received. The CFPB is taking action to prevent Americans from being hounded by debt collectors over unsubstantiated or invalid medical bills.
Illegal practices identified by the CFPB include double billing, collecting on false or poorly documented debts, exceeding legal caps, and misrepresenting consumers' rights to dispute charges.
In conclusion, it is crucial for consumers to be aware of their rights regarding medical debt collection. The CFPB's actions aim to protect individuals from unfair practices and ensure that they are not burdened with invalid debts. Understanding these guidelines can help individuals navigate the complex world of medical billing and debt collection, ultimately safeguarding their financial well-being.