Medical schools will not recognize CLEP credit
Not true. I used CLEP to satisfy one of the premed requirements (General Chemistry), and this wasn't an issue with the schools I interviewed at this cycle (and it just so happened that I interviewed only at top 25). Prior to applying I emailed these schools and asked them if they accepted CLEP credit, they said they did and they didn't lie to me.
Now, there are at least 2 caveats I can think of:
1) Just as there are schools that flat out don't accept CC credits (Johns Hopkins), I'm sure there are schools that don't accept CLEP. Thus, you should clarify this point with each school you're applying to.
2) I have BS and MS in Chemistry from a different country, so I already have a solid background in Chemistry, and I have a graduate degree in Biology from the US and years of biomedical research etc., so adcoms don't doubt my scientific aptitude; in my case, fulfilling premed requirements is more of a formality (the vast majority of US medical schools wouldn't accept my foreign and graduate credits, so I had to (re)take the standard premed requirements at US undergrad colleges). But in any case, my point is: the schools I applied to do accept CLEP, though they will consider it in the context of your application - just as they consider your whole education history.
CC credits are also fine for most schools (see caveat 1 above); plenty of people have gotten into medical schools, including top MD schools, with CC credits. But again, the context matters.