A member of the House of Representatives has introduced a resolution calling on Congress to express its disapproval of the Consumer Financial Protection Bureau’s medical debt advisory opinion, which has become the subject of much debate since it was released last month. The resolution was introduced by Rep. Gary Palmer [R-Ala.], who isn’t a member of the House Financial Services Committee or any healthcare committees, has only sponsored four bills this year, but has introduced 37 resolutions in the past five months.
A resolution is a lot like a bill in that it needs to be voted on and passed by both the House of Representatives and Senate before being sent to the president for his signature or veto.
What it says: The text of the resolution, H.J.Res 220, reads:
- Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Bureau of Consumer Financial Protection relating to “Debt Collection Practices (Regulation F); Deceptive and Unfair Collection of Medical Debt”.
- Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That Congress disapproves the rule submitted by the Bureau of Consumer Financial Protection relating to “Debt Collection Practices (Regulation F); Deceptive and Unfair Collection of Medical Debt” (89 Fed. Reg. 80715; published October 4, 2024), and such rule shall have no force or effect.
The resolution has been referred to the House Financial Services Committee for its consideration.
The big picture: The CFPB issued the advisory opinion in question on October 1. Among the guidance was:
- Avoiding collection of already paid debts – Collectors must ensure debts have not been settled by consumers, insurers, or government payors.
- Respecting legal exemptions – Debts exempt under federal or state laws, such as workers’ compensation, must not be pursued.
- Sticking to legal limits – Collectors cannot demand amounts exceeding caps set by laws like the No Surprises Act.
- Avoiding misrepresentation – Misstating the legal status or amounts of medical debt is prohibited.
- Validating services – Collectors must avoid pursuing debts for services not provided, such as those resulting from “upcoding.”
- Substantiating debts – Collectors need reasonable documentation to confirm the validity of debts, aligned with privacy regulations.
ACA International filed a lawsuit
