Alabama Congressman Backs Debt Collectors in Opposing Medical Debt Protections

Over 100 million Americans struggle with medical debt, often facing deceptive collection practices. To address these issues, the CFPB issued an October advisory clarifying that collectors must verify debts, avoid pursuing incorrect amounts, and rely on patient-provider contracts to determine defaults.

The advisory has faced backlash from the debt collection industry. ACA International filed a lawsuit and a restraining order to block its implementation, while Rep. Gary Palmer (R-AL) introduced a Congressional Review Act resolution to overturn it.

Consumer advocates argue these protections are reasonable and essential, especially for vulnerable groups, including Black and Hispanic patients, and those in non-Medicaid expansion states like Alabama, who are disproportionately burdened by medical debt.