The federal Consumer Financial Protection Bureau (the "CFPB") announced today that it has taken action against a medical debt collection company in regard to the manner it handled consumer credit reporting disputes and consumer debt collection rights. The CFPB reports that the collection company's practices potentially affected the credit scores of thousands of individuals. The CFPB is ordering the company to correct its business practices and to provide over $5.4 million in relief to harmed consumers.
The CFPB notes that companies that "collect medical debt and supply this information to credit reporting agencies have a significant impact on consumers' credit scores." It reports that more than 43 million American have medical debt that adversely affects their credit reports.
The CFPB found that this company mishandled consumer credit reporting disputes by "failing to investigate and respond to consumers within the 30-day timeframe required under the law." The CFPB order charged the company with violating the Fair Debt Collection Practices Act and the Fair Credit Reporting Act.