The ABA strongly criticizes the CFPB's proposal, arguing it violates the APA by overstepping its authority and improperly assumes medical debt isn't a credit risk indicator.
The ABA contends that banning medical debt from credit reports is not supported by sufficient evidence, as the CFPB relies on outdated studies and nonrepresentative data.
By restricting lenders from considering medical debts in underwriting, the proposal could lead to increased consumer delinquencies and defaults, threatening both bank stability and consumer credit access.
The ABA points out that the CFPB seems driven by a desire to influence healthcare policy, which they believe is outside the agency's granted powers under the FCRA.
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