CFPB’s New Rule Limits Medical Debt in Credit Reports – What Consumers Need to Know

CFPB’s New Rule Limits Medical Debt in Credit Reports – What Consumers Need to Know //

On January 7, 2025, the Consumer Financial Protection Bureau (“CFPB”) issued a final rule under the Fair Credit Reporting Act (“FCRA”) that significantly restricts how medical debt information is used in credit decisions.

This CFPB Medical Debt Rule (“Prohibition on Creditors and Consumer Reporting Agencies Concerning Medical Information”) aims to prevent medical debt from unfairly impacting credit approvals and credit scores. The rule removes certain exceptions that previously allowed creditors and consumer reporting agencies (“CRAs”) to consider medical debt when determining credit eligibility.

Read the Executive Summary of the FCRA Medical Information Rule here.

Key Changes Under the Medical Debt Rule

The final rule introduces several major changes:

  1. Creditors Are Prohibited from Using Medical Debt in Credit Decisions

The rule removes an existing exception that previously allowed creditors to obtain and use medical information—including medical debt details—when evaluating credit eligibility.

  • Creditors can no longer factor in medical debt when determining whether to approve or deny credit.
  • Medical devices cannot be used as collateral for loans.
  • Lenders cannot request medical debt information from consumers on loan applications.
  • These restrictions apply regardless of how the creditor learns about the medical debt—whether through credit reports, applications, or other means.
  1. Consumer Reporting Agencies Face New Limits on Furnishing Medical Debt Information

Under the rule, CRAs—such as Equifax, Experian, and TransUnion—are restricted in how they report medical debt information to creditors.

  • CRAs can no longer include medical debt information in credit reports unless they have reason to believe the creditor is legally permitted to use it.
  • If state laws prohibit creditors from considering medical debt, CRAs must comply and not furnish that data.
  • This restriction applies to medical bills, repayment terms, and collection actions related to medical debt.
  1. New & Revised Exceptions for Credit Eligibility Considerations

While the rule broadly restricts medical debt use in credit decisions, there are limited exceptions:

  • Consumer-Authorized Transactions: If a consumer explicitly authorizes access to medical expenses in their financial accounts (e.g., checking accounts, credit cards), creditors may use this data for cash-flow underwriting.
  • Medical-Related Income & Benefits: Consumers can still report medical-related benefits as income for loan applications. This includes:
    • Disability benefits
    • Workers’ compensation payments
    • Other medical-related financial benefits
  • Legal Compliance: If a creditor is required by law (such as Regulation Z’s ability-to-repay requirements), they may use medical debt information to comply with those regulations.

Why This Rule Matters for Consumers

This CFPB Medical Debt Rule is designed to:

Protect consumers from being unfairly denied credit due to medical debt.
Ensure credit decisions are based on financial stability rather than unexpected medical expenses.
Reduce the impact of inaccurate medical debt reporting on credit scores.
Prevent lenders from using medical devices as collateral for loans.

Who Is Affected by the CFPB Medical Debt Rule?

The rule applies to:

  • Creditors & lenders – Any institution using consumer credit reports for lending decisions.
  • Consumer reporting agenciesEquifax, Experian, TransUnion, and any CRA furnishing credit reports to creditors.
  • Consumers with medical debt – Individuals struggling with medical bills may now see less impact on their credit reports.

When Does the Rule Take Effect?

The final rule takes effect 60 days after publication in the Federal Register.

Final Thoughts

The CFPB Medical Debt Rule represents a major shift in credit reporting and lending practices. If a creditor or credit bureau violates these new medical debt protections, you may have legal recourse.

Feel free to send us a message or contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], for a free, no-obligation evaluation of potential legal claims.

About Kehoe Law Firm, P.C.

Kehoe Law Firm, P.C. is a nationally recognized, plaintiff-side class action law firm dedicated to protecting investors and consumers from fraud and misconduct. Our attorneys have served as Lead or Co-Lead Counsel in major securities cases, recovering over $10 billion for institutional and individual investors. We litigate securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations, while also representing whistleblowers and advocating for victims of data breaches, consumer fraud, vehicle and product defects, employment law violations, retirement plan mismanagement, and other corporate and business misconduct. With a results-driven approach, we pursue justice and substantial recoveries for those we represent.

KLF’s class action legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses. 

 

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Ford EcoSport Recall of 18,648 Vehicles Due to Possibility of Front Axle Shaft Disconnecting

Kehoe Law Firm, P.C. is notifying consumers that the possibility of front axle shafts disconnecting has led to a recall by Ford Motor Company (Ford) of certain 2021-2022 Ford EcoSport vehicles.

The front axle half shafts of the recalled Ford EcoSport vehicles may disconnect from the transmission, which can result in a loss of drive power.

A loss of drive power increases the risk of a crash. In addition, a disconnected half shaft can result in a vehicle rollaway if the parking brake is not applied, increasing the risk of a crash or injury.

Vehicles Affected by the Recall 

The recall impacts the following vehicles:

  • 2021-2022 Ford EcoSport

Recall Remedy

Dealers will inspect and replace the half shafts as necessary, free of charge. Owner notification letters are expected to be mailed April 7, 2025.

Additional Recall Details

More information about the recall can be found in the following official documents:

How to Check if Your Vehicle Has Been Recalled

To determine if your vehicle is subject to this recall, please click Check for Recalls to easily search vehicles, car seats, tires and other equipment for safety recalls, investigations, complaints and manufacturer communication.

Questions About A Vehicle Defect or Recall?

Vehicle owners and lessess affected by automotive defects or safety recalls are encouraged to contact Kehoe Law Firm, P.C. by sending us a message below or contacting Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], for a free, no-obligation evaluation of potential legal claims.

About Kehoe Law Firm, P.C. 

Kehoe Law Firm, P.C is a nationally recognized, plaintiff-side class action firm dedicated to protecting investors and consumers from fraud and misconduct. Our attorneys have served as Lead or Co-Lead Counsel in major securities cases, recovering over $10 billion for institutional and individual investors. We litigate securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations, while also representing whistleblowers and advocating for victims of data breaches, consumer fraud, vehicle and product defects, employment law violations, retirement plan mismanagement, and other corporate and business misconduct. With a results-driven approach, we pursue justice and substantial recoveries for those we represent.

Our class action legal services are on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses.

Lincoln Navigator Exterior Side Mirror Fire Risk Leads to Recall by Ford of 35,328 Vehicles

Kehoe Law Firm, P.C. is notifying consumers that an increased risk of fire due to a short circuit of the LED logo lights on certain Lincoln Navigator exterior side mirror assemblies has caused the Ford Motor Company (“Ford”) to initiate a recall of 35,328 vehicles, including certain 2015-2017 Lincoln Navigators.  

Affected Lincoln Navigator Vehicles

The recall impacts the following vehicles:

  • 2015-2017 Lincoln Navigators 

Short Circuit of Lincoln Navigator Exterior Side Mirror Assemblies Increases Risk of Fire

The light-emitting diode (LED) logo lamps within the driver side and passenger side exterior mirror assemblies may short circuit without tripping the short detection threshold. An electrical short in the exterior mirror increases the risk of fire. 

Recall Remedy

Owners will be notified by mail and instructed to take their vehicle to a Ford or Lincoln dealer to cut and disconnect the power wire to the LED logo lamp. There will be no charge for this service.

Ford provided the general reimbursement plan for the cost of remedies paid for by vehicle owners prior to notification of a safety recall in May 2023.

Owners who have paid to have these repairs completed at their own expense may be eligible for reimbursement, in accordance with the recall reimbursement plan on file with NHTSA.

Additional Recall Details

More information about the recall (Ford recall 25S08) can be found in the following official documents:

How to Check if Your Vehicle Has Been Recalled

To determine if your vehicle is subject to this recall, please click Check for Recalls to easily search vehicles, car seats, tires and other equipment for safety recalls, investigations, complaints and manufacturer communication.

Questions About A Vehicle Defect or Recall?

Vehicle owners and lessess affected by automotive defects or safety recalls are encouraged to contact Kehoe Law Firm, P.C. by sending us a message below or contacting Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], for a free, no-obligation evaluation of potential legal claims.

About Kehoe Law Firm, P.C. 

Kehoe Law Firm, P.C is a nationally recognized, plaintiff-side class action firm dedicated to protecting investors and consumers from fraud and misconduct. Our attorneys have served as Lead or Co-Lead Counsel in major securities cases, recovering over $10 billion for institutional and individual investors. We litigate securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations, while also representing whistleblowers and advocating for victims of data breaches, consumer fraud, vehicle and product defects, employment law violations, retirement plan mismanagement, and other corporate and business misconduct. With a results-driven approach, we pursue justice and substantial recoveries for those we represent.

Our class action legal services are on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses.

TaskUs Securities Class Action Settlement Reached for $17.5 Million

Kehoe Law Firm, P.C., representing Lead Plaintff Humberto Lozada, is pleased to announce that TaskUs, Inc. has agreed to a $17.5 million settlement to resolve a securities class action lawsuit.

The lawsuit, Lozada v. TaskUs, Inc. et al. (No. 22-cv-1479-JPC), filed in United States District Court for the Southern District of New York, alleged that TaskUs’ IPO registration statement, along with its Q2 and Q3 2021 earnings calls, contained materially false and misleading information in violation of federal securities laws. Investors suffered financial losses following the disclosure of adverse information about the company.

TaskUs Securities Class Action Settlement Details

On February 24, 2025, TaskUs entered into a Stipulation and Agreement of Settlement to resolve the litigation for an all cash amount of $17.5 million.

“This settlement represents a significant victory for investors and shareholders affected by TaskUs’ alleged misstatements,” said Michael Yarnoff, partner at Kehoe Law Firm. “By securing a $17.5 million resolution, we have provided a path for investors to recover losses while reinforcing the critical need for transparency in the financial markets. Our firm remains committed to protecting investor rights and ensuring corporate accountability”.

Questions About the Class Action Settlement?

TaskUs investors who have questions about the class action settlement are encouraged to send us a message or contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected].

About Kehoe Law Firm, P.C. 

Kehoe Law Firm, P.C. is a nationally recognized, plaintiff-side class action firm dedicated to protecting investors and consumers from fraud and misconduct. Our attorneys have served as Lead or Co-Lead Counsel in major securities cases, recovering over $10 billion for institutional and individual investors. We litigate securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations, while also representing whistleblowers and advocating for victims of data breaches, consumer fraud, vehicle and product defects, employment law violations, retirement plan mismanagement, and other corporate and business misconduct. With a results-driven approach, we pursue justice and substantial recoveries for those we represent.

Kehoe Law Firm’s legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses.

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ADDRESS

Kehoe Law Firm, P.C.
2001 Market Street
Suite 2500
Philadelphia, PA 19103

PHONE

Tel: 215-792-6676

EMAIL

[email protected]

The Bancorp, Inc. – Securities Fraud Investigation – TBBK

Kehoe Law Firm, P.C. is investigating potential securities fraud claims on behalf of investors of The Bancorp, Inc. (“The Bancorp,” “Bancorp” or the “Company”) (NASDAQ:TBBK).

Class Action Lawsuit Filed Against The Bancorp

On March 14, 2025, a class action complaint alleging violations of the federal securities laws was filed against The Bancorp in United States District Court for the District of Delaware on behalf of Bancorp investors who purchased or otherwise acquired the Company’s securities between January 25, 2024 and March 4, 2025, both dates inclusive (the “Class Period”). 

Bancorp Investors Who Acquired Their Securities During the Class Period May Have Legal Claims

Bancorp investors who acquired their securities during the Class Period and suffered financial losses are encouraged to complete KLF’s Stockholder Information Request Form or send us a message to contact an attorney for a free, no-obligation legal evaluation.

Summary of the Securities Fraud Class Action Allegations 

According to the complaint, throughout the Class Period, the Bancorp Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects.

Specifically, The Bancorp Defendants allegedly failed to disclose to investors that Bancorp had underrepresented the significant risk of default or loss on its REBL loan portfolio; the Company’s current expected credit loss methodology was insufficient to account for the provision and/or allowance of credit losses; and as a result of the foregoing, the Company was reasonably likely to increase its provision for credit losses.

The complaint also alleges that throughout the Class Period, there were material weakness in the Company’s internal control over financial reporting; its financial statements had not been approved by its independent auditor; and as a result, the Company’s financial statements could not be relied upon, and the  Bancorp Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Bancorp Reports It Inappropriately Filed its Annual Report on Form 10-K

On March 4, 2025, The Bancorp reported that “[o]n March 3, 2025, [it] . . . inappropriately filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the ‘Annual Report’).”

The Company reported that “[a]fter receiving notification on March 3, 2025 from the Company’s independent public accounting firm, Crowe LLP, on March 4, 2025, the Audit Committee of the Board of Directors concluded that the Company’s filed financial statements for the fiscal years ended December 31, 2022 through 2024 as shown in the Annual Report, should no longer be relied upon . . ..”

The Bancorp further reported that it “. . . is working expeditiously to perform and complete additional closing procedures related to accounting for consumer fintech loans in the allowance for credit losses and to file an amended Annual Report on Form 10-K/A to issue its financial statements for the fiscal years ended December 31, 2022 through 2024 to include Crowe’s and Grant Thornton LLP’s audit opinions and related consents. The Company is evaluating the impact of this non-reliance on its conclusions regarding disclosure controls and procedures and internal control over financial reporting.”

The Bancorp Continues to Evaluate Its Conclusions Regarding Internal Control Over Financial Reporting

On March 10, 2025, Bancorp reported that it “. . . expects to record an adjustment to the allowance for loan losses and provision expense associated with consumer fintech loans outstanding at the end of the period, and record a like amount, to the consumer fintech loan credit enhancement on the balance sheet and non-interest income, with no net income impact.”

The Company also reported that it “. . . is continuing to evaluate its conclusions regarding disclosure controls and procedures, and internal control over financial reporting.” 

Learn More About The Bancorp Class Action 

For direct inquiries, Bancorp investors who acquired their securities during the Class Period should contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected].

About Kehoe Law Firm, P.C.

Kehoe Law Firm, P.C. is a nationally recognized, plaintiff-side class action firm dedicated to protecting investors and consumers from fraud and misconduct. Our attorneys have served as Lead or Co-Lead Counsel in major securities cases, recovering over $10 billion for institutional and individual investors.

Our firm litigates securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations, while also representing whistleblowers and advocating for victims of data breaches, consumer fraud, vehicle and product defects, employment law violations, retirement plan mismanagement, and other corporate and business misconduct. With a results-driven approach, we pursue justice and substantial recoveries for those we represent.

Kehoe Law Firm’s class action legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses.

SEND US A MESSAGE

Contact Us

ADDRESS

Kehoe Law Firm, P.C.
2001 Market Street
Suite 2500
Philadelphia, PA 19103

PHONE

Tel: 215-792-6676

EMAIL

[email protected]