⚖️CFPB finalizes rule banning medical debt from credit reports | Dodd Frank Update
The Consumer Financial Protection Bureau (CFPB) issued a final rule prohibiting medical debt from being included on credit reports used by lenders for credit decisions. The rule, which amends Regulation V of the Fair Credit Reporting Act, is expected to remove approximately $49 million in medical bills from about 15 million Americans' credit reports and could lead to roughly 22,000 additional mortgage approvals annually.
While lenders may be permitted to consider medical information for specific purposes like verifying medical-based forbearances or considering certain benefits as income, they will be banned from including medical debt information on consumer credit reports and credit scores. The CFPB cited research showing that medical debt is a poor predictor of loan repayment ability, and expects Americans with medical debt on their credit reports to see their credit scores increase by an average of 20 points once the rule takes effect.
🎧Head of VISA Ventures, David Rolf - Building At The Intersection of Emerging Markets & Trends | Wharton FinTech Podcast
David Rolf, the Head of Visa Ventures dives into how Visa’s strategic investment arm is shaping the future of fintech, from AI innovation to emerging market opportunities. In this episode, David discusses how Visa Ventures partners with startups to drive innovation beyond traditional venture capital, key attributes Visa looks for in AI and other applied technologies, and provides insights on balancing innovation with regulation.
📊47% of Retailers Say False Declines Impact Consumer Satisfaction | PYMNTS
Payment declines, particularly false declines, are emerging as a major challenge for retailers, with $157 billion in U.S. eCommerce sales at risk in 2023 and $81 billion projected to be permanently lost. The issue significantly impacts customer satisfaction, with 47% of retailers reporting severe negative effects and 82% of online retailers struggling to identify the root causes of failed payments.
Open payments platforms are offering a solution by enabling intelligent payment routing and providing crucial performance metrics. These platforms help prevent incorrect declines through alternative payment routes and offer centralized access to critical data for better decision-making. This is particularly important for subscription-based businesses, where 40% saw an increase in involuntary churn over the past year due to payment failures, though 79% had not implemented strategies to address the issue. The platforms can automatically retry failed payments and manage subscription lifecycles more effectively, helping maintain customer retention and recurring revenue.
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