SE Nebraska News

WASHINGTON, D.C. – U.S. Congressman Mike Flood issued a statement today in response to the Consumer Financial Protection Bureau's (CFPB) decision 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," Flood stated. "Credit checks are meant to protect consumers from overborrowing 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."

Flood further expressed concern that such policies could lead the country towards another financial crisis similar to that of 2008. "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," he said.

The congressman emphasized his commitment to addressing this issue with his colleagues on the Financial Services Committee. "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."

More information about the CFPB’s announcement can be found here.