Every week we put our faith in action. This week we are writing Congress urging them to protect a rule recently put into effect by the Consumer Financial Protection Bureau (CFPB) that removes medical debt from credit reports. The CFPB has taken decisive action to protect consumers with medical debt from financial ruin. But the new rule is at risk, and it’s urgent that many voices speak out to save it.

Medical debt burdens millions of families across the country and can unfairly tarnish a person’s credit record and lower their credit score, making it more difficult to qualify for a loan and forcing them to pay more. But after years of advocacy by NCLC and our allies, the CFPB has finalized a rule to remove medical debts from consumer credit scores. The rule stops credit bureaus from sharing medical debts with lenders, and prohibits lenders from making lending decisions based on existing medical debt. The medical debt rule is incredibly important, but Congress could repeal it using fast track rules under the Congressional Review Act – so Congress needs to hear from the public now!

The “big three” credit bureaus (Equifax, Transunion, Experian) voluntarily removed some medical collections information starting in 2022, but the CFPB found last year that 15 million Americans still had more than $49 billion in outstanding medical debt on their credit reports. Consumers left behind by industry efforts were more likely to live in the South and in predominantly Black and Latino/Hispanic neighborhoods.

The medical debt rule highlights the importance of the CFPB in the protection of working class people against debt collectors that weaponize the credit reporting system to coerce payments, including for inaccurate or false medical bills. The debt collection industry and the credit bureaus have filed separate lawsuits in Texas against the CFPB to strike down the new rule.

This rule is part of a larger initiative by the CFPB to address hidden junk fees charged by banks and financial companies that disproportionately harm low-income consumers. Since its formation, the CFPB has obtained over $21 billion in relief for over 205 million people, but the CFPB itself is also under attack.

Options to Take Action:

1. 1. 1. Sign a letter at the Action Table on Sunday.
      2. Click on the links to download an Action Letter to sign and mail for either Within CA or Outside CA.
      3. Click on this link to go to the National Consumer Law Center action on removing medical debt from credit reports.

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As we mourn all those lost to violence in the Middle East, we continue to pray for peace in the Holy Land and for our Episcopal Relief & Development partners who are working to serve all people who come to them seeking treatment and safety. Your generous support of the ERD Middle East Fund will help to address immediate and long-term needs created by the Israel-Hamas war through locally-led partnerships. Donate to the ERD here.

Contact the White House at https://www.whitehouse.gov/contact/ or leave a phone comment at 1-202-456-1111.

If you ever need to look up your member of the U.S. House of Representatives or your U.S. Senators check here: www.house.gov and www.senate.gov.

To find contact information for your California State Senator or California State Assemblymember check here: www.senate.ca.gov and www.assembly.ca.gov.