Consumer credit reporting companies, debt collectors, and banks laid out their legal strategy should they opt for litigation to block a Consumer Financial Protection Bureau proposal barring medical debt from credit reports.
In comment letters to the CFPB due Aug. 12, industry groups challenged the agency’s authority to eliminate an exemption from the Fair Credit Reporting Act that has allowed third-party collectors to get outstanding medical debt added to consumers’ credit reports. They also said the CFPB’s economic justification for the rule, which was based largely on research from 2014, wasn’t sufficient.
The trade group letters outlined the likely legal ...