CFPB SAYS NEW VA MEDICAL DEBT REPORTING RULE IS FUTURE INDUSTRY STANDARD

The U.S. Department of Veterans Affairs (“VA”) has published a final rule amending the VA’s procedures for reporting debt to consumer reporting agencies. Under the final rule, the VA will only report a delinquent debt owed to the VA if it meets three criteria:
(i) the VA has exhausted all available collection efforts, including enforced collection;
(ii) the debt is not owed by an individual who is determined by VA to be catastrophically disabled or has reported to VA a gross household income below the threshold for cost-free health care; and
(iii) the outstanding debt is over $25. Through this new rule, the VA expects a 99% reduction in adversely reported debt. Read More