On April 11, the CFPB filed a joint motion in the U.S. District Court for the District of Columbia indicating its intent to revoke an advisory opinion on medical debt collection. The Bureau requested a stay of litigation while it moves to formally withdraw the opinion and committed to providing a status update by July 14 and every 30 days thereafter.
The October 2024 advisory opinion interpreted the Fair Debt Collection Practices Act (FDCPA) and Regulation F to restrict certain medical debt collection practices, including those involving allegedly deceptive or unfair statements about the validity or scope of consumer obligations. The opinion’s issuance triggered multiple lawsuits challenging the CFPB’s statutory authority and legal basis, arguing that the Bureau exceeded its rulemaking powers by issuing substantive policy through an advisory opinion without following the Administrative Procedure Act’s notice-and-comment requirements.
The parties explained that revoking the advisory opinion would resolve the plaintiff’s legal claims, eliminating the need for further litigation. The CFPB stated that it was actively evaluating next steps and that maintaining the litigation would be inefficient and unnecessary.
Putting It Into Practice: The CFPB’s decision to revoke its medical debt advisory opinion continues a broader rollback of policies issued under prior leadership (previously discussed here and here). As the Bureau reconsiders its approach, states may increasingly step in to fill the regulatory gap—particularly those active in applying and enforcing UDAAP laws.