1. United States
2. Calif.
3. Letter

Today I take pen in hand to write and urge you to oppose yet another Trump-led agency that has been hamstrung and re-purposed to threaten protections for consumers AT THE STATE level. The recent guidance issued by the Consumer Financial Protection Bureau (CFPB) threatens state-level protections against medical debt appearing on consumer credit reports. This misguided policy reversal could have devastating consequences for millions of Americans already struggling with medical debt and its impact on their financial well-being. In the light of Trump plans to shred the Affordable Care Act, it will only lead to hardship for millions of families. Over a dozen states have already enacted laws to shield consumers' credit from the burden of medical debt, with more states considering similar measures. These protections are crucial, as medical debt often results from circumstances beyond an individual's control and should not hinder their ability to participate fully in the economy. The CFPB's new stance, asserting that only the federal government has the authority to restrict medical debts on credit reports, directly contradicts the previous administration's efforts to empower states in expanding these vital protections. It’s overreach of the kind that Republicans ‘warned us’ about, i.e. used scare tactics about. While this guidance may not immediately roll back existing state protections, it threatens to stall progress in other states considering similar laws. This comes at a critical time when millions of Americans face the potential loss of federal aid for health insurance, potentially exacerbating the medical debt crisis. The CFPB's position could also lead to increased litigation challenging state restrictions on medical debt credit reporting, creating uncertainty and instability in consumer protection The economic consequences of this change in policy could be severe. When medical debt appears on credit reports, it can lower credit scores, making it harder for individuals to secure loans, rent apartments, or even find employment. This, in turn, can lead to reduced economic participation and growth in our communities. We must prioritize the financial health of our constituents over the interests of credit reporting agencies. We cannot afford to take a step backward in consumer protection at a time when our government is run by oligarchs owned by corrupt medical providers. Oppose CFPB Guidance on medical debt reporting. Thank you.