New Jersey Citizen Action has expressed approval of the Consumer Financial Protection Bureau's (CFPB) recent rule, which prohibits the inclusion of medical debt on credit reports and prevents creditors from using patients' medical information.
Laura Waddell, Health Care Program Director at New Jersey Citizen Action, stated, “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.” She emphasized that for comprehensive financial protection, a combination of state and federal reforms is necessary. "The CFPB’s rule provides that critical federal safeguard,” she added.
Waddell acknowledged that further efforts are required to continue addressing the issue. “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.”
Beverly Brown Ruggia, Financial Justice Program Director at New Jersey Citizen Action, highlighted the widespread impact of medical debt in New Jersey: “Medical debt impacts 1 in 5 New Jersey residents, creating barriers to housing, employment, and even healthcare access due to damaged credit.” She stressed that it is unacceptable for individuals to face financial challenges because they or their family members became ill. "With this rule," Ruggia said, "the CFPB has stepped in once again to protect the most vulnerable among us from being treated unfairly and from possible financial ruin."
