NCL supports CFPB’s proposal to remove medical debt from credit reports

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September 28, 2023

Media contact: National Consumers League – Melody Merin, melodym@nclnet.org, 202-207-2831

Washington, DC – The National Consumers League (NCL) supports the bold proposal from the Consumer Financial Protection Bureau (CFPB) to remove medical bills from Americans’ credit reports.

According to a CFPB report released in March 2022, $88 billion of outstanding medical bills are currently in collections—affecting one in five Americans. Medical debt constitutes a majority (57 percent) of all collections on credit reports.

“This proposal will help families financially recover from medical crises and prevent debt collectors from coercing people into paying bills they may not even owe,” said Sally Greenberg, CEO of the NCL. “It will ensure that creditors are not relying on data that is often plagued with inaccuracies and mistakes.”

Approximately 20 percent of Americans report having medical debt, according to the March 2022 report, but previous research by the CFPB shows that consumers with medical debt generally paid back their loans or bills at the same rate as consumers with higher credit scores.

If finalized, the CFPB proposal will do the following:

  • Remove medical bills from consumers’ credit reports: Consumer reporting companies would be prohibited from including medical debts and collection information on consumer reports that creditors use in making underwriting decisions.
  • Stop creditors from relying on medical bills for underwriting decisions: The proposal would narrow the 2005 exception and prohibit creditors from using medical collections information when evaluating borrowers’ credit applications.
  • Stop coercive collection practices: As unpaid medical bills would no longer appear on consumers’ credit reports used by creditors in making underwriting decisions, debt collectors would no longer be able to use the credit reporting system as leverage to pressure consumers into paying questionable debts.

Greenberg added, “Medical debt is not caused by profligate spending. Americans incur this debt because of emergencies or because they are uninsured or underinsured. We believe that this proposed rule will allow consumers weighed down by medical debt through no fault of their own and help them to restore their access to sustainable credit.”

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About the National Consumers League (NCL)
The National Consumers League, founded in 1899, is America’s pioneer consumer organization.  Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad.  For more information, visit nclnet.org.

 

NCL statement on PBMs and new GAO report

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September 18, 2023

Media contact: National Consumers League – Melody Merin, melodym@nclnet.org, 202-207-2831

WASHINGTON, DC – The National Consumers League (NCL) today released a statement following a recently released U.S. Government Accountability Office (“GAO”) report on Medicare Part D rebates.

The following statement is attributable to NCL Chief Executive Officer, Sally Greenberg:

“Investigation after investigation, report after report, and study after study prove that pharmacy benefit managers (“PBMs’) do not provide benefits to consumers. To the contrary, we believe PBMs, who are middlemen, drain billions of dollars that should be going into the pockets of patients and consumers and help them defray their healthcare costs. The evidence mounts that PBMs, which once had a noble purpose, have lost their way and become profit centers unto themselves, adding costs to our drug supply system at the expense of patients. This latest report by GAO underscores that our nation’s seniors – often our most vulnerable patients who rely most on medications – pay the highest price for PBM practices.

“In just one year, GAO found that the PBMs collected almost $50 billion in rebates from prescription drug manufacturers under the Medicare Part D program alone. These savings should go directly to Medicare beneficiaries, but for the nearly 80 of the highest rebated drugs analyzed, GAO found that seniors paid more than $20 billion, while their plan sponsors — often vertically integrated with PBMs — paid only $5.3 billion. PBMs are able to enrich themselves because they control access to prescription drugs, block competition, conduct business in the shadows, and pocket discounts meant for patients. PBMs simply driving up out-of-pocket costs for Medicare beneficiaries to the tune of millions of dollars.

“Congress has an opportunity to enact meaningful PBM reforms to prevent such behavior. We urge our leaders in Congress to closely examine the findings of the GAO report, and put a stop to the practices of PBMs to profit off of vulnerable patients. In doing so, our elected representatives will put money back in the pockets of patients and help them to better afford the medications they need.”

Learn more about NCL’s work to address the PBM problem at nclnet.org/pbms.

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About the National Consumers League (NCL)
The National Consumers League, founded in 1899, is America’s pioneer consumer organization.  Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad.  For more information, visit nclnet.org.

NCL applauds FDA for its latest decision to approve an updated COVID-19 vaccine

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September 11, 2023

Media contact: National Consumers League – Melody Merin, melodym@nclnet.org, 202-207-2831

Washington, DC – The NCL applauds the FDA’s announcement approving the latest COVID vaccine, which will be available to many Americans immediately or very soon to patients who are eligible.

The Centers for Disease Control and Prevention recorded 9,000 COVID-19 hospital admissions in the week ending July 29, a 12.5-percent increase from the week before. While that’s far below the nearly 45,000 admissions recorded the same week a year ago, the new vaccine is nevertheless is welcome and much needed to keep COVID and its new variants in check. The percentage of emergency department patients diagnosed with COVID-19 has risen gradually in July.

National Consumers League urges swift confirmation of FTC nominees

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July 7, 2023

Media contact: National Consumers League – Melody Merin, melodym@nclnet.org, 202-207-2831

WASHINGTON, D.C. – The National Consumers League (NCL) today urged leaders in the Senate to restore the Federal Trade Commission (FTC) to its full complement of Commissioners by swiftly confirming Utah Solicitor General Melissa Holyoak and Virginia Solicitor General Andrew Ferguson, who were nominated by President Biden on July 3 and FTC Commissioner Rebecca Slaughter, who was renominated to a second term on February 13.

The following statement is attributable to NCL Chief Executive Officer Sally Greenberg:

“The FTC operates best when it is at full strength. NCL therefore welcomes the nomination of these three outstanding public servants whose key skills, experience, commitment, and expertise will serve them well in fulfilling the agency’s critical consumer protection and competition promotion mission. We look forward to working with Commissioner-designate Holyoak, Commissioner-designate Ferguson, Commissioner Slaughter, and all the leaders of the FTC to fulfill the important mandate of this independent consumer protection agency.”

NCL urges DC Council to reject anti-consumer and anti-worker bill

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June 9, 2023

Media contact: National Consumers League – Melody Merin, melodym@nclnet.org, 202-207-2831

Washington, DC – In preparation for a June 8 hearing, NCL submitted a letter to the DC Council urging that the council reject Bill 25-0280, the “Workers and Restaurants are Priorities Act of 2023.” NCL believes this bill is both anti-consumer and anti-worker and it sets a dangerous precedent for carving out an exemption to our DC Consumer Protection Procedures Act (CPPA) for the sole protection of restaurants.

The letter can be found here.

NCL applauds President Biden for protecting student borrowers and vetoing attempt to end critical programs

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June 8, 2023

Media contact: National Consumers League – Melody Merin, melodym@nclnet.org, 202-207-2831

Washington, D.C. – The National Consumers League (NCL) today applauded President Biden for vetoing Congress’s attempt to roll back critical programs and protections for student loan borrowers. If the bill had become law, President Biden’s one-time debt cancellation would have been nullified, denying over 25 million borrowers critical relief. Additionally, the ongoing payment pause would have been abruptly ended and beneficiaries would have received surprise bills for the past few months of loan interest—interest that has been waived by bipartisan administrations. Lastly, borrowers who saw their loans discharged under longstanding debt cancellation programs, such as Public Service Loan Forgiveness, would have had their debts reinstated.

The following statement is attributable to NCL Public Policy Manager Eden Iscil:

“With today’s veto, President Biden averted disaster for student borrowers nationwide. While the president’s action was important to prevent harm, we must do more to protect individuals with student debt before repayment begins later this summer. Millions of borrowers are currently in limbo as the Supreme Court decides whether they will side with the people and allow debt cancellation to go into effect, or if they will protect loan servicers’ interests and block relief. Repayment should not happen until we address the educational debt crisis.”

 

NCL welcomes FDA heightened concerns related to CBD products

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December 29, 2022 [Updated]

Media contact: National Consumers League – Melody Merin, melodym@nclnet.org, 703-298-2614

Washington, D.C. – The National Consumers League (NCL), the nation’s oldest consumer advocacy organization, is welcoming of the FDA’s heightened concern and attention to consumer safety risks in the CBD or cannabidiol consumer product market.

“The FDA’s continued engagement and work in the CBD consumer product market is critical to protecting consumer safety – the agency’s increased attention to CBD products is welcome news,” said Sally Greenberg, NCL’s Chief Executive Officer.

In 2019, in response to the proliferation of unreviewed and untested CBD products, NCL identified the need for greater education among consumers about CBD and better enforcement of regulations in the CBD marketplace. NCL created Consumers for Safe CBD to address this need, champion the rights of consumers, and call on government and industry to do better – to ensure safety and promote a pathway for new products through clinically tested scientific research.

Since then, action has been taken on the state and federal levels to increase access to cannabinoids beyond CBD, which is why NCL is now shifting its focus to cannabis more broadly with the establishment of Cannabis Consumer Watch. Cannabidiol (CBD) is a chemical compound found in cannabis plants. It is one of the main ingredients in cannabis, but unlike THC, it does not cause a high or have psychoactive effects.

“NCL called on the FDA to develop regulations for the CBD marketplace. We also asked the CBD industry to ensure safety and promote a pathway for new products through clinically tested scientific research,” said Greenberg.

The 2018 Farm Bill legalized hemp cultivation in the U.S., which led to significant growth in the CBD marketplace.

“Since 2019, NCL and other groups like the Consumer Federation of America and Community Anti-Drug Coalitions of America have been asking the FDA to step in and address the CBD marketplace – which is currently a ‘Wild West,’ with myriad unsubstantiated claims made by many in the industry about the so-called benefits of CBD products for everything from sleep disorders to cancer to pain relief, without regard to safe dosages,” Greenberg noted. “We want the agency to establish a regulatory framework for the legal sale of appropriate cannabis and cannabis-derived products. Some industry members have been asking for rules of the road as well. Any regulatory framework FDA recommends for cannabis-derived products must prioritize consumer safety and address the safety risks the agency has identified.”

There is only one FDA-approved drug on the market that employs CBD as its active ingredient – Epidiolex – a medication to treat a rare form of childhood epilepsy. That drug has undergone the rigorous FDA approval process and thus has substantiated therapeutic benefits that outweigh the risks which can be managed by prescribing physicians.

Cannabis Consumer Watch will continue to work to educate consumers about the potential dangers of CBD in an unregulated market and encourage the FDA to take strong, effective, and prompt action to protect the public from the potential harms posed by unregulated, untested CBD.

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About the National Consumers League (NCL)
The National Consumers League, founded in 1899, is America’s pioneer consumer organization.  Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad.  For more information, visit https://nclnet.org.

DeSantis’s anti-vax claims are wrong and dangerous, says NCL

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December 22, 2022

Media contact: National Consumers League – Melody Merin, melodym@nclnet.org, 703-298-2614

WASHINGTON, D.C. – The National Consumers League was very disappointed to learn that Florida Governor Ron DeSantis recently announced that he is requesting a statewide grand jury investigation into alleged “crimes and wrongdoings” relating to the COVID-19 vaccine. He is forming a public health policy committee whose charge is to review public health recommendations and guidance made by federal health experts and agencies like the Food and Drug Administration and the Centers for Disease Control and Prevention (CDC). The committee will be overseen by the state’s Surgeon General Joseph Ladapo, who himself has repeatedly made anti-vaccination claims.

“For a public official of Governor DeSantis’s stature to make these baseless anti-vaccination claims is wrong and dangerous,” says NCL Chief Executive Officer Sally Greenberg. “The governor has reversed course from supporting the roll out of the COVID vaccine and now is raising questions, against all scientific evidence, about the efficacy and safety of these critically important medicines. COVID vaccinations have been found overwhelmingly effective in reducing the risk of infection from the SARS-CoV-2 virus, which has killed more than 1 million Americans, most of whom were unvaccinated.”

In a study of  4,000 healthcare personnel, police, firefighters, and other essential workers, the CDC found that the vaccines reduced the risk of infection by 80 percent after one shot. Protection increased to 90 percent following the second dose. The findings are consistent with clinical trial results and studies showing strong effectiveness in Israel and the United Kingdom, and in initial studies of healthcare workers at the UT Southwestern Medical Center and in Southern California.

Protecting public health remains one of NCL’s focus, and vaccinations are one of the most effective public health prevention tools available to keep consumers and workers safe from severe and potentially deadly diseases.

We call upon all officials – including Governor DeSantis – who hold positions of responsibility and visibility, to rely on evidence-based medicine and science before making unfounded claims.

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About the National Consumers League (NCL)
The National Consumers League, founded in 1899, is America’s pioneer consumer organization.  Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad.  For more information, visit https://nclnet.org.

NCL Executive Director testifies before the DC Council in support of the Sunshine in Litigation Act

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December 9, 2022

Media contact: National Consumers League – Melody Merin, melodym@nclnet.org, 703-298-2614

WASHINGTON, D.C. – Sally Greenberg, NCL’s Executive Director, testified before the D.C. Council Committee on Judiciary & Public Safety yesterday to express support for the “Sunshine in Litigation Act of 2022.

Read her full testimony here.

Court decision jeopardizes CFPB and threatens critical government programs, says NCL

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October 24, 2022

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, (202) 207-2832

Washington D.C.— Last week, the Fifth Circuit Court of Appeals ruled that the Consumer Financial Protection Bureau’s (CFPB) funding structure is unconstitutional due to its non-reliance on annual Congressional appropriations. This ruling sets a dangerous precedent that could cause irreparable harm to consumers by undoing critical regulations against predatory fees and practices among financial servicers. Additionally, the Fifth Circuit’s logic, if extended across the federal government, would upend numerous federal entities that are also self-funded or otherwise receive revenue without regular Congressional appropriation, including Social Security and Medicare. 

The following statement is attributable to NCL Executive Director Sally Greenberg: 

“For more than 11 years, the CFPB has served as a dedicated champion for consumers in the federal government, preventing abusive, discriminatory, and predatory practices in the finance sector. The Fifth Circuit’s decision against the CFPB’s funding structure not only jeopardizes the CFPB’s invaluable work but also puts other key regulators at structural risk, such as the Federal Reserve System, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC). The Fifth Circuit’s ahistorical logic threatens other critical government programs as well, such as Social Security and Medicare. I hope upon further appeal, the American judicial system will not choose to side with payday lenders again.” 

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About the National Consumers League (NCL)

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit https://nclnet.org.