May 5: CFPB Updates This Week

PUBLISHED 

CFPB Report Highlights Costly Credit Cards and Loans Pushed on Patients

Today, the Consumer Financial Protection Bureau (CFPB) published a report on high-cost specialty financial products, such as medical credit cards, that are sold to patients as a way to alleviate the growing costs of medical care. Patients are typically offered these products in a medical provider’s office even when their insurance may cover the procedure or they qualify for a hospital’s reduced or no-cost financial assistance program. The report finds that these specialty products are typically more expensive for patients than other forms of payment, including conventional credit cards, with interest rates often reaching above 25%. These products can add, instead of remove, the financial stress that comes with medical bills, including decreased access to credit, costly and lengthy collection litigation, and an increased likelihood of bankruptcy.

PUBLISHED 

CFPB Proposes New Consumer Protections for Homeowners Seeking Clean Energy Financing

The Consumer Financial Protection Bureau (CFPB) proposed a rule to implement a Congressional mandate to establish consumer protections for residential Property Assessed Clean Energy (PACE) loans.

Related reading: The CFPB issued a Notice of Proposed Rulemaking related to residential Property Assessed Clean Energy (PACE) financing.  The CFPB also issued a Fast Facts Summary that provides a high-level overview of the proposed rule and an Unofficial Redline.

Additionally, the CFPB has published a report on PACE financing, which found that the loans cause an increase in mortgage delinquency and other negative credit outcomes for some borrowers.

Comments on the Notice of Proposed Rulemaking are due July 26, 2023, or 30 days after publication in the Federal Register, whichever is later.

You can access the Notice of Proposed Rulemaking, Fast Facts Summary, Unofficial Redline, and Report here: www.consumerfinance.gov/rules-policy/rules-under-development/residential-property-assessed-clean-energy-financing-regulation-z/.

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