Cornerstone League Challenges CFPB Rule on Medical Debt

Cornerstone League and the Consumer Data Industry Association have filed a lawsuit against the Consumer Federal Protection Bureau’s final medical debt rule. 

The rule, finalized on Tuesday, prohibits creditors from using medical debt information in credit eligibility determinations and consumer reporting agencies from including medical debt in reports to creditors making credit determinations. 

“The CFPB’s final rule exceeds the bureau’s authority under the Fair Credit Reporting Act and ignores the legislative history of medical debts,” said Suzanne Yashewski, regulatory compliance counsel at Cornerstone League, in the filing. “If finalized, the rule would block credit unions from obtaining a full picture of consumers’ debt, significantly increasing the odds of loan loss, negatively impacting the credit union and its member-owners.”  

Watch for more news on this challenge as developments occur.