Debt Collectors Challenge CFPB’s New Rules on Medical Bills (1)

A recent Consumer Financial Protection Bureau advisory on the collection of past-due health care bills violates the Administrative Procedure Act, debt collectors allege in a new federal lawsuit.

The rule is part of the Biden administration’s recent efforts to prevent medical debt from drastically impacting a patient’s credit rating. But plaintiffs say the opinion, issued Oct. 1, “inserts debt into the private health care decisions made between patients and their providers.”

The nonprofit organization ACA International LLC and collection agency Collection Bureau Services Inc. say in their petition filed Nov. 1 in U.S. District Court…