Congressman Flood: CFPB’s Change to Credit Checks Hurts Consumers, Threatens Financial System Stability

WASHINGTON, D.C. – Today, U.S. Congressman Mike Flood issued a statement following news that the Consumer Financial Protection Bureau (CFPB) is moving to exempt medical bills from credit checks.

“Time and again, Director Chopra has wielded power he doesn’t have, and this time is no different. His attempt to exempt medical debt from credit checks is bad news for both consumers and financial institutions. Credit checks are meant to protect consumers from over borrowing and to ensure institutions are lending to people who have a reasonable chance of paying back a loan. Without a full picture on what kind of debt a person may have, lenders will be flying blind. Policies like these from President Biden and Director Chopra will set our country on a pathway towards a 2008-style financial crisis, which was a product of consumers borrowing beyond their means. I’ll be working with my colleagues on the Financial Services Committee to push back on this overreach, so that we can protect consumers and the integrity of America’s financial system.”

Learn more about the CFPB’s announcement here.