Protecting Veterans Credit Act of 2016

Summary: Protecting Veterans Credit Act of 2016  This bill amends the Fair Credit Reporting Act to exclude from a consumer report: (1) for one year, information related to a veteran's choice medical program (program) debt; and (2) information related to a fully paid or settled program debt that had been characterized as delinquent, charged off, or in collection. The Consumer Credit Protection Act is amended to provide a mechanism for veterans to dispute the inclusion of program debt already on a credit report. A consumer reporting agency shall, within 30 days after receiving notice of such dispute, delete such information from the veteran's file and notify the furnisher and the veteran.  Within five days after the initial communication with a veteran, a debt collector shall, unless the appropriate information is contained in the initial communication or the veteran has paid the debt, send the veteran a written notice containing specified debt-related information, including information concerning debt amount, creditors, the insurance company involved, and the hospital or medical care provider. If a veteran notifies the debt collector within such one-year period that the program debt is disputed or that the veteran requests the name and address of the original creditor, the debt collector shall cease collection until debt verification or the name and address of the original creditor is obtained.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Protecting Veterans Credit Act of 
2016''.

SEC. 2. PURPOSE.

    The purpose of this Act is to rectify reporting of medical debt 
included in a consumer report of a veteran due to inappropriate or 
delayed payment for hospital care or medical services provided pursuant 
to section 101 of the Veterans Access, Choice, and Accountability Act 
of 2014 (38 U.S.C. 1701 note) and to clarify the process of debt 
collection for such medical debt.

SEC. 3. AMENDMENTS TO FAIR CREDIT REPORTING ACT.

    (a) Veteran's Choice Medical Debt Defined.--Section 603 of the Fair 
Credit Reporting Act (15 U.S.C. 1681a) is amended by adding at the end 
the following:
    ``(z) Veteran's Choice Medical Debt.--The term `veteran's Choice 
medical debt' means a debt of a veteran arising from hospital care or 
medical services provided pursuant to section 101 of the Veterans 
Access, Choice, and Accountability Act of 2014 (38 U.S.C. 1701 note).
    ``(aa) Veteran.--The term `veteran' has the meaning given such term 
in section 101(2) of title 38, United States Code.''.
    (b) Exclusion for Veteran's Choice Medical Debt.--Section 605(a) of 
the Fair Credit Reporting Act (15 U.S.C. 1681c) is amended by adding at 
the end the following:
            ``(7) Any information related to a veteran's Choice medical 
        debt if the date on which such debt was placed for collection, 
        charged to profit or loss, or subjected to any similar action 
        antedates the report by less than 1 year.
            ``(8) Any information related to a fully paid or settled 
        veteran's Choice medical debt that had been characterized as 
        delinquent, charged off, or in collection.''.
    (c) Removal of Veteran's Choice Medical Debt From Consumer 
Report.--Section 611 of the Consumer Credit Protection Act (15 U.S.C. 
1681i) is amended--
            (1) in subsection (a)(1)(A), by inserting ``and except as 
        provided in subsection (g)'' after ``subsection (f)''; and
            (2) by adding at the end the following new subsection:
    ``(g) Dispute Process for Veteran's Choice Medical Debt.--A 
consumer may submit a notice along with proof of participation in the 
program established pursuant to section 101 of the Veterans Access, 
Choice, and Accountability Act of 2014 (38 U.S.C. 1701 note) to a 
consumer reporting agency or a reseller to dispute the inclusion of a 
veteran's Choice medical debt on a consumer report of the consumer. Not 
later than 30 days after receipt of the notice, the consumer reporting 
agency shall delete information relating to the veteran's Choice 
medical debt from the file of the consumer and notify the furnisher and 
the consumer of that deletion.''.

SEC. 4. COMMUNICATIONS REGARDING VETERAN'S CHOICE MEDICAL DEBT.

    (a) In General.--Section 809 of the Fair Debt Collection Practices 
Act (15 U.S.C. 1692g) is amended--
            (1) in subsection (a), by inserting ``, except for a 
        veteran's Choice medical debt as described in subsection (f),'' 
        after ``any debt''; and
            (2) by adding at the end the following:
    ``(f) Veteran's Choice Medical Debt.--
            ``(1) Definitions.--For purposes of this subsection:
                    ``(A) Consumer reporting agency.--The term 
                `consumer reporting agency' has the meaning given such 
                term under section 603(f) of the Fair Credit Reporting 
                Act.
                    ``(B) Veteran.--The term `veteran' has the meaning 
                given such term in section 101(2) of title 38, United 
                States Code.
                    ``(C) Veteran's choice medical debt.--The term 
                `veteran's Choice medical debt' means a debt of a 
                veteran arising from hospital care or medical services 
                provided pursuant to section 101 of the Veterans 
                Access, Choice, and Accountability Act of 2014 (38 
                U.S.C. 1701 note).
            ``(2) Communications regarding veteran's choice medical 
        debt.--Within five days after the initial communication with a 
        veteran in connection with the collection of a veteran's Choice 
        medical debt, a debt collector shall, unless the following 
        information is contained in the initial communication or the 
        veteran has paid the debt, send the veteran a written notice 
        containing--
                    ``(A) the amount of the debt;
                    ``(B) the name of the creditor to whom the debt is 
                owed;
                    ``(C) a statement that unless the veteran, within 1 
                year after the initial communication, disputes the 
                validity of the debt, or any portion thereof, the debt 
                will be assumed to be valid by the debt collector;
                    ``(D) a statement that if the veteran notifies the 
                debt collector in writing within such 1-year period 
                that the debt, or any portion thereof, is disputed, the 
                debt collector will obtain verification of the debt or 
                a copy of a judgment against the veteran and a copy of 
                such verification or judgment will be mailed to the 
                veteran by the debt collector;
                    ``(E) a statement that, upon the veteran's written 
                request within such 1-year period, the debt collector 
                will provide the veteran with the name and address of 
                the original creditor, if different from the current 
                creditor;
                    ``(F) a statement that the debt collector will not 
                report the debt to a consumer reporting agency until 1 
                year after the date on which the debt collector sends 
                the statement; and
                    ``(G) a statement that the consumer may communicate 
                with--
                            ``(i) an insurance company to determine 
                        coverage for the debt;
                            ``(ii) the Department of Veterans Affairs 
                        to determine coverage for the debt or repayment 
                        options; or
                            ``(iii) the provider of hospital care or 
                        medical services provided pursuant to section 
                        101 of the Veterans Access, Choice, and 
                        Accountability Act of 2014 (38 U.S.C. 1701 
                        note).
            ``(3) Collection of veteran's choice medical debt.--If the 
        veteran notifies the debt collector in writing within the 1-
        year period described in paragraph (1) that the veteran's 
        Choice medical debt, or any portion thereof, is disputed, or 
        that the veteran requests the name and address of the original 
        creditor, the debt collector shall cease collection of the 
        veteran's Choice medical debt, or any disputed portion thereof, 
        until the debt collector obtains verification of the veteran's 
        Choice medical debt or a copy of a judgment, or the name and 
        address of the original creditor, and a copy of such 
        verification or judgment, or name and address of the original 
        creditor, is mailed to the veteran by the debt collector. 
        Collection activities and communications that do not otherwise 
        violate this title may continue during the 1-year period 
        referred to in paragraph (1) unless the veteran has notified 
        the debt collector in writing that the veteran's Choice medical 
        debt, or any portion of the debt, is disputed or that the 
        veteran requests the name and address of the original creditor. 
        Any collection activities and communication during the 1-year 
        period may not overshadow or be inconsistent with the 
        disclosure of the veteran's right to dispute the veteran's 
        Choice medical debt or request the name and address of the 
        original creditor.''.

SEC. 5. EFFECTIVE DATE.

    The amendments made by this Act shall take effect after the end of 
the 90-day period beginning on the date of the enactment of this Act.