Consumer Financial Protection Bureau (CFPB) 

CFPB Issues Advisory Opinion Related to Medical Debt Collection 

The CFPB issued an advisory opinion to clarify debt collectors' obligation to comply with the Fair Debt Collection Practices Act (FDCPA) and the prohibitions on false, deceptive, or misleading representations or means in connection with the collection of any medical debt. 

The advisory opinion details how companies may be violating federal law when they collect or attempt to collect on medical bills that are inaccurate, unsubstantiated, or invalid under the law. Specifically, the guidance details illegal practices including: 

• Double billing: Companies cannot attempt to collect on medical bills that have already been paid by the consumer, insurance, or a government program such as Medicare or Medicaid. This practice can coerce consumers into paying twice for the same service, causing significant financial harm. 

• Exceeding legal limits: Companies must not attempt to collect amounts that surpass federal or state caps, such as those set by the federal No Surprises Act or state laws on “reasonable” rates. These violations can saddle consumers with unjustifiably high medical debts, burdening their finances and deterring them from seeking future care. 

• Falsified or fake charges: Debt collectors must not collect on bills that include “upcoded” or exaggerated services, or charges for services the consumer did not receive. This deceptive practice can drastically inflate consumers’ medical debts, potentially leading to long-term financial distress or even bankruptcy. 

• Collecting unsubstantiated medical bills: Debt collectors must not attempt to collect medical debts unless they are substantiated, which may include having documentation of payments or financial assistance eligibility. Collecting unsubstantiated bills can result in consumers being harassed for debts they do not owe or for which they qualify for financial assistance. 

• Misrepresenting consumers’ rights to contest bills: Companies must not misrepresent to consumers that the amount being collected is fully settled, when the payment obligation may be uncertain. Misrepresenting the status of the amount may pressure consumers into paying disputed or negotiable debts. 

League InfoSight Highlight: NACHA Changes Effective Oct. 1, 2024

In an effort to reduce the incidence of successful fraud attempts and improve recovery of funds after fraud has occurred, NACHA has made some rule amendments as part of a larger Risk Management package that became effective on Oct. 1, 2024.

Effective this week:

• RDFIs are permitted to (but not required) to use R17 to return an entry that it believes is fraudulent.

• A new term is being referenced, false pretenses, which is defined as “the inducement of a payment by a Person misrepresenting (a) that Person’s identity, (b) that Person’s association with or authority to act on behalf of another Person, or (c) the ownership of an account to be credited”. The amended rule provides RDFIs with an additional exemption from the funds availability requirements to include credit entries that the RDFI suspects are originated under false pretenses.

• The amended rule will allow a Written Statement of Unauthorized Debit (WSUD) to be signed and dated by the Receiver on or after the date on which the Entry is presented to the Receiver, even if the debit has not yet been posted to the account.

• When returning a debit as unauthorized in the extended return timeframe, the RDFI must do so by the opening of the sixth Banking Day following the completion of its review of the consumer’s signed WSUD.

Be on the lookout for amendments to our CU PolicyPro model policies 2611: ACH Operations and Management, and 2612: ACH Audit. We are actively working with our ACH experts to have those policies updated and published next week.

Please let us know if you have any questions!

Glory LeDu

CEO, League InfoSight & CU Risk Intelligence

GoWest Credit Union Conversations: Fraud & Risk Management 

Exciting news! The Fraud and Risk Management Conversation is now live!  

Email notifications from “GoWest Online” were sent to former participants of the Risk Management Listserv informing them of a message posted inside the Fraud and Risk Management Conversation. The Risk Management Listserv is now closed, and they have been added to the Fraud and Risk Management Conversation, which is a new tool to connect with other Fraud and Risk Managers! All the benefits of the listserv will be available, plus much more. 

The new tool can be accessed either from the email by clicking the “View/Comment” button in the emails you receive from Conversations, or by logging in directly. Log into your GoWest Online account, click “My Account” and then “Home” to see the Conversations. 

The new Conversation will allow credit unions to share developing fraud issues with each other along with other risk mitigation strategies. 

CFPB Consumer Advisory: Pause and Review Your Rights When You Hear from a Medical Debt Collector 

Department of Labor Launches Tool to Provide Workers with Disabilities, Employers Ideas for Workplace Accommodations 

Federal and State Financial Regulatory Agencies Issue Interagency Statement on Supervisory Practices Regarding Financial Institutions Affected by Hurrican Helene 

‘I’ve Got Video of You’: New Blackmail Scam 

Avoid Scams When You Hire a Moving Company 

Recovery scams will follow Hurricane Helene. Here’s how to spot them 

How to order free COVID test kits from the federal government and avoid the scammers 

Alleged Cryptocurrency Platform, Nasdaqkk.cc Appears to be Engaged in Fraud

Oct. 8, 2024: Comments Due NCUA Proposed Anti-Money Laundering and CFT Program Requirements 

Oct. 16, 2024: CFPB FDX Application for Open Banking Standard-Setter 

Oct. 21, 2024: Comments Due on Financial Data Transparency Act

Oct. 30, 2024: Effective Date - NCUA Final Rule on Fair Hiring in Banking

Nov. 15, 2024: NCUA Comments Due Changes to Call Reports

If two members who are joint owners on an account get divorced, and the court gives the money in the account to one of those members, are we responsible for disbursing the funds in the account in accordance with the divorce decree? 

No. Credit unions are governed by the contract of deposit, and under that contract, the members are still joint owners until the day they jointly close the account. Until that day, both joint owners can access the money in the account. This means that it is the joint owners' responsibility for disbursing the funds in the account in accordance with the divorce decree. The credit union cannot, and should not, get involved in disbursing the funds unless it receives a court order which: 1) lists the credit union as the defendant and 2) demands that the credit union disburse the funds in a specified manner. 

For your individualized login, select your state below. 

If you have questions about this communication, contact us at 800.546.4465 or via our shared email inbox at compliance@gowest.org.

Have a great weekend!

Your GoWest Compliance Team, 

Copyright © 2023 GoWest Credit Union Association. All Rights Reserved.

Mailing Address:
GoWest Credit Union Association, 18000 International Blvd Ste. 1102, SeaTac, WA 98188, United States
1.800.995.9064

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