Business Groups & Congress Rally to Repeal CFPB’s Medical Rule

Catch me up: In the final days of the Biden administration, the Consumer Financial Protection Bureau (CFPB) finalized a final rule that prevents medical debt from being included on a credit report. The rule has sparked widespread opposition. Leaders from Congress and the business community are coming together to eliminate this rule given it threatens access to credit and availability of healthcare services for millions of Americans.

Chamber leading from the front: More than a dozen business organizations, led by the Chamber, have called on Congress to urgently address the CFPB’s flawed medical debt rule. Our joint letter to Congress emphasizes the rule's negative impact on consumers’ access to credit and harm to rural medical providers and underscores the importance of acting before the Congressional Review Act (CRA) window closes at the end of April.

“Medical debt is a serious concern for many Americans, but the CFPB’s rule will do nothing to address a complex healthcare system or eliminate the debt. Instead, it will harm the very individuals it aims to help.”

CRA Resolutions Gain Traction: The Senate must advance the CRA Resolution by the end of April for it to eligible for special procedures that only require 51 votes. Senator Mike Rounds (R-SD) and Representative Ralph Norman (R-SC) are championing a resolution to overturn the CFPB’s medical debt rule. In a recent Financial Services Committee hearing, Rep. Norman highlighted concerns about the rule’s overreach, with witnesses discussing its potential harm to credit markets. When Senator Rounds introduced the CRA, he added, “This rule gives credit card companies a less clear credit picture of who they’re lending money to, which could lead to banks limiting access to capital for consumers."

House Financial Services Committee Takes a Stand:The House Financial Services Committee sent a letter to the CFPB last week urging the repeal or amendment of the rule due to its negative impact on rural medical providers, among other issues. The Committee’s letter highlighted that "Americans, especially those in rural areas, cannot afford to have their local hospitals shuttered." If the rule is not overturned, one economist predicts a $24 billion loss to healthcare providers in the first year alone, threatening the viability of small and rural healthcare facilities. Last year, the Committee expressed similar concerns, emphasizing the rule's potential to undermine healthcare accessibility in underserved areas.

The Bottom Line:The CFPB's medical debt rule threatens credit access and healthcare services. Congress must seize this moment to take decisive action, protecting American families and businesses from the fallout.

About the authors

Bill Hulse

Bill Hulse oversees the day-to-day efforts of the U.S. Chamber of Commerce Center for Capital Markets Competitiveness (CCMC), including policy development and advocacy.

Read more

Matthew Mullins

Matthew Mullins is a coalition manager at the U.S. Chamber.