New Jersey Citizen Action Applauds CFPB’s Rule Banning Medical Debt from Credit Reports
New Jersey Citizen Action Applauds CFPB’s Rule Banning Medical Debt from Credit Reports
NEWARK: New Jersey Citizen Action (NJCA) applauds the Consumer Financial Protection Bureau’s (CFPB) final rule, which removes and bans the inclusion of medical debt on credit reports and prohibits creditors from accessing and using patients’ sensitive medical information.
“In July of 2024, New Jersey enacted important legislation banning the reporting of most medical debt in the state, which was a significant step toward reducing the severe economic harms caused by medical debt,” said Laura Waddell, Health Care Program Director at New Jersey Citizen Action. “However, to ensure the strongest and most sustainable financial protections, our residents need a comprehensive approach that combines state and federal reforms. The CFPB’s rule provides that critical federal safeguard.”
“There is more work to be done to build on this progress and we look forward to continuing our work on comprehensive actions that will prevent, alleviate, and reduce the harms caused by medical debt,” Waddell added.
“Medical debt impacts 1 in 5 New Jersey residents, creating barriers to housing, employment, and even healthcare access due to damaged credit. It is unacceptable that anyone should have their credit ruined and potentially lose access to these essentials for living just because they, or a family member got sick,” said Beverly Brown Ruggia, Financial Justice Program Director at New Jersey Citizen Action. “With this rule, the CFPB has stepped in, once again to protect the most vulnerable among us from being treated unfairly and from possible financial ruin.”
####
New Jersey Citizen Action is a statewide advocacy and empowerment organization that advances social, racial and economic justice for all, while also meeting the pressing needs of low- and moderate-income New Jerseyans through education and direct services.
(Visited 22 times, 2 visits today)
