Consumer credit: credit reports and reporting agencies; collection and reporting of medical debt information; regulate. Creates new act.
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Overview
This bill, titled the "Medical Debt Act", prohibits consumer reporting agencies from including information about medical debt in consumer reports, with some exceptions. It establishes standards for how collection agencies handle medical debt and provides a legal remedy for consumers who believe their rights have been violated. The law aims to protect consumers from having medical debt negatively impact their credit scores unless it’s related to a large loan.
Key provisions
- Consumer reporting agencies cannot include medical debt information in consumer reports.
- Collection agencies cannot represent that medical debt information will be included in a consumer report unless it relates to a large loan.
- Collection agencies must include a specific statement in their initial communication to consumers regarding the prohibition on reporting medical debt.
- The bill defines key terms such as ‘consumer report,’ ‘medical debt,’ and ‘collection agency.’
- Exceptions exist for credit transactions exceeding the national conforming loan limit.
- Consumers can sue collection agencies that violate the act to recover damages and seek injunctive relief.
- Successful plaintiffs in these lawsuits may recover their attorney’s fees.
Who is affected
- Consumers
- Consumer Reporting Agencies
- Collection Agencies
- Healthcare Providers
- Credit Bureaus
Bill text
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Document of record
- Version
- Senate Introduced Bill
- Published
- Not published in the source record
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