Overreach at the Consumer Financial Protection Bureau Key agencies have consistently ignored the law regarding their required work to determine how proposed regulations affect small businesses.
Moreover, the method by which federal agencies comply with federal law regarding their statutory requirements is “like a check-the-box exercise rather than actually analyzing the effects of their regulations. This is failing to live up to the spirit of the letter of the law and is causing small businesses to suffer,” according to the report.
Under this specific rulemaking, the CFPB contacted various small-entity constituencies affected by the proposal — such as debt collectors, data brokers and financial institutions. Missing from the conversation, however, was the vast range of medical providers that would be affected if the federal government eliminated incentives for consumers to pay their medical bills.
Added pressures that may come with higher bill delinquencies would translate into higher patient fees and costs. Also, the trend in advance billing for surgeries or other procedures could accelerate, meaning less access to health care for many. As it is, the sustainability of the U.S. health care system is under threat. In 2023 alone, providers were forced to write off $17.4 billion in bad debt, according to a recent study by Kodiak RCA.