CFPB Implements New Rules on January 16, 2025, to Protect Consumers from Medical Debt and Predatory Lending in Roberts and Arora Cases

The Consumer Financial Protection Bureau (CFPB) has announced several new initiatives aimed at enhancing consumer protections in the financial sector. A recent rule prohibits credit reporting agencies from including medical debt on credit reports and bars lenders from considering medical information when evaluating borrowers. Additionally, the CFPB is addressing concerns over predatory lending practices by banning harmful clauses in financial contracts. The agency is also issuing a nationwide consumer advisory regarding the use of home equity products that may carry risks reminiscent of those seen in the mortgage crisis. Furthermore, the CFPB has filed amicus briefs in two cases—Roberts v. Unlock Partnership Solutions AOI and Arora v. TransUnion—to ensure accountability among financial companies and credit reporting agencies regarding compliance with federal law and the accuracy of credit data.