I 

117TH CONGRESS 

1ST SESSION H. R. 2537 

To amend the Fair Debt Collection Practices Act to provide a timetable 

for the collection of medical debt by debt collectors, to amend the Fair 

Credit Reporting Act to prohibit consumer reporting agencies from 

issuing consumer reports containing information about debts related to 

medically necessary procedures, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 14, 2021 

Ms. TLAIB introduced the following bill; which was referred to the Committee 

on Financial Services 

A BILL 

To amend the Fair Debt Collection Practices Act to provide 

a timetable for the collection of medical debt by debt 

collectors, to amend the Fair Credit Reporting Act to 

prohibit consumer reporting agencies from issuing consumer reports containing information about debts related 

to medically necessary procedures, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Consumer Protection 

5 for Medical Debt Collections Act’’. 


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1 SEC. 2. AMENDMENTS TO THE FAIR DEBT COLLECTION 

2 PRACTICES ACT. 

3 (a) DEFINITION.—Section 803 of the Fair Debt Col4 lection Practices Act (15 U.S.C. 1692a) is amended by 

5 adding at the end the following: 

6 ‘‘(9) The term ‘medical debt’ means a debt 

7 arising from the receipt of medical services, 

8 products, or devices.’’. 

9 (b) UNFAIR PRACTICES.—Section 808 of the Fair 

10 Debt Collection Practices Act (15 U.S.C. 1692f) is amend11 ed by adding at the end the following: 

12 ‘‘(9) Engaging in activities to collect or at13 tempting to collect a medical debt owed or due 

14 or asserted to be owed or due by a consumer, 

15 before the end of the 2-year period beginning 

16 on the date that the first payment with respect 

17 to such medical debt is due.’’. 

18 SEC. 3. PROHIBITION ON CONSUMER REPORTING AGEN19 CIES REPORTING CERTAIN MEDICAL DEBT. 

20 (a) DEFINITION.—Section 603 of the Fair Credit Re21 porting Act (15 U.S.C. 1681a) is amended by adding at 

22 the end the following: 

23 ‘‘(bb) MEDICAL DEBT.—The term ‘medical debt’ 

24 means a debt arising from the receipt of medical services, 

25 products, or devices. 


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1 ‘‘(cc) MEDICALLY NECESSARY PROCEDURE.—The 

2 term ‘medically necessary procedure’ means— 

3 ‘‘(1) health care services or supplies needed to 

4 diagnose or treat an illness, injury, condition, dis5 ease, or its symptoms and that meet accepted stand6 ards of medicine; and 

7 ‘‘(2) health care to prevent illness or detect ill8 ness at an early stage, when treatment is likely to 

9 work best (including preventive services such as pap 

10 tests, flu shots, and screening mammograms).’’. 

11 (b) IN GENERAL.—Section 605(a) of the Fair Credit 

12 Reporting Act (15 U.S.C. 1681c(a)) is amended by adding 

13 at the end the following new paragraphs: 

14 ‘‘(9) Any information related to a debt arising 

15 from a medically necessary procedure. 

16 ‘‘(10) Any information related to a medical 

17 debt, if the date on which such debt was placed for 

18 collection, charged to profit or loss, or subjected to 

19 any similar action antedates the report by less than 

20 365 calendar days.’’. 

21 SEC. 4. REQUIREMENTS FOR FURNISHERS OF MEDICAL 

22 DEBT INFORMATION. 

23 (a) ADDITIONAL NOTICE REQUIREMENTS FOR MED24 ICAL DEBT.—Section 623 of the Fair Credit Reporting 


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1 Act (15 U.S.C. 1681s–2) is amended by adding at the end 

2 the following: 

3 ‘‘(f) ADDITIONAL NOTICE REQUIREMENTS FOR MED4 ICAL DEBT.—Before furnishing information regarding a 

5 medical debt of a consumer to a consumer reporting agen6 cy, the person furnishing the information shall send a 

7 statement to the consumer that includes the following: 

8 ‘‘(1) A notification that the medical debt— 

9 ‘‘(A) may not be included on a consumer 

10 report made by a consumer reporting agency 

11 until the later of the date that is 365 days 

12 after— 

13 ‘‘(i) the date on which the person 

14 sends the statement; 

15 ‘‘(ii) with respect to the medical debt 

16 of a borrower demonstrating hardship, a 

17 date determined by the Director of the Bu18 reau; or 

19 ‘‘(iii) the date described under section 

20 605(a)(10); and 

21 ‘‘(B) may not ever be included on a con22 sumer report made by a consumer reporting 

23 agency, if the medical debt arises from a medi24 cally necessary procedure. 


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1 ‘‘(2) A notification that, if the debt is settled or 

2 paid by the consumer or an insurance company be3 fore the end of the period described under paragraph 

4 (1)(A), the debt may not be reported to a consumer 

5 reporting agency. 

6 ‘‘(3) A notification that the consumer may— 

7 ‘‘(A) communicate with an insurance com8 pany to determine coverage for the debt; or 

9 ‘‘(B) apply for financial assistance.’’. 

10 (b) FURNISHING OF MEDICAL DEBT INFORMA11 TION.—Section 623 of the Fair Credit Reporting Act (15 

12 U.S.C. 1681s–2), as amended by subsection (a), is further 

13 amended by adding at the end the following: 

14 ‘‘(g) FURNISHING OF MEDICAL DEBT INFORMA15 TION.— 

16 ‘‘(1) PROHIBITION ON REPORTING DEBT RE17 LATED TO MEDICALLY NECESSARY PROCEDURES.— 

18 No person shall furnish any information to a con19 sumer reporting agency regarding a debt arising 

20 from a medically necessary procedure. 

21 ‘‘(2) TREATMENT OF OTHER MEDICAL DEBT IN22 FORMATION.—With respect to a medical debt not 

23 described under paragraph (1), no person shall fur24 nish any information to a consumer reporting agenVerDate Sep 11 2014 03:24 Jun 08, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2537.IH H2537

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1 cy regarding such debt before the end of the 365- 

2 day period beginning on the later of— 

3 ‘‘(A) the date on which the person sends 

4 the statement described under subsection (f) to 

5 the consumer; 

6 ‘‘(B) with respect to the medical debt of a 

7 borrower demonstrating hardship, a date deter8 mined by the Director of the Bureau; or 

9 ‘‘(C) the date described in section 

10 605(a)(10). 

11 ‘‘(3) TREATMENT OF SETTLED OR PAID MED12 ICAL DEBT.—With respect to a medical debt not de13 scribed under paragraph (1), no person shall furnish 

14 any information to a consumer reporting agency re15 garding such debt if the debt is settled or paid by 

16 the consumer or an insurance company before the 

17 end of the 365-day period described under para18 graph (2). 

19 ‘‘(4) BORROWER DEMONSTRATING HARDSHIP

20 DEFINED.—In this subsection, and with respect to a 

21 medical debt, the term ‘borrower demonstrating 

22 hardship’ means a borrower or a class of borrowers 

23 who, as determined by the Director of the Bureau, 

24 is facing or has experienced unusual extenuating life 

25 circumstances or events that result in severe finanVerDate Sep 11 2014 03:24 Jun 08, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2537.IH H2537

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1 cial or personal barriers such that the borrower or 

2 class of borrowers does not have the capacity to 

3 repay the medical debt.’’. 

4 SEC. 5. EFFECTIVE DATE. 

5 This Act and the amendments made by this Act shall 

6 take effect on the date that is 180 days after the date 

7 of enactment of this Act. 

Æ 


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