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

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