On Friday, April 11, 2025, The Consumer Financial Protection Bureau (CFPB) announced its plans to revoke its advisory opinion on medical debt in a court filing in response to legal and congressional pressure it was facing.
The filing, which was made in the case of the ACA and Collection Bureau Services vs. the CFPB and then Director Rohit Chopra, was the first of several cases filed challenging the CFPB advisory opinion. The CFPB also requested for the parties to stay the litigation until the opinion is revoked.
Originally, the CFPB had delayed the effective date of the advisory opinion from December 1, 2024, to January 2, 2025. The court also issued a preliminary injunction on this case, an additional preliminary injunction in the Consumer Data Industry Association and Cornerstone Credit Union League case against the CFPB, as well as a motion to stay proceedings in the ACA and Specialized Collection Systems Inc. lawsuit filed in early January.
The CFPB is also facing pressure on the legislative side with bills introduced that would eliminate all funding for the CFPB. Bills introduced in the House and Senate have not moved past the initial stage at this point.
In addition to legal and legislative challenges, on April 16, 2025, a memo was circulated to staff that the CFPB would be shifting its enforcement and supervision priorities for 2025. According to Reuters, the memo said that inspections of financial service companies would be cut in half and they would turn away from areas like medical debt, student loan, consumer data and digital payments.
The CFPB is to provide a status report to the courts by July 14, 2025 and every 30 days after as to the progress towards revocation. Americollect will continue to follow any changes to the CFPB.
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