The document was released on September 8, 2022, by the Consumer Financial Protection Bureau. It clarifies that under the Nursing Home Reform Act, a nursing facility may not condition a resident’s admission or continued stay on receiving a guarantee of payment from a third party, such as a relative or friend. Contractual provisions that violate that prohibition are illegal and unenforceable. As detailed in this Circular, certain practices related to the collection of nursing home debts that are invalid under the Nursing Home Reform Act and its implementing regulation violate the Fair Debt Collection Practices Act (FDCPA) and Fair . . .
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