I 

114TH CONGRESS 

2D SESSION H. R. 5593 

To amend the Fair Credit Reporting Act and the Fair Debt Collection 

Practices Act to delay the inclusion in consumer credit reports and 

to establish requirements for debt collectors with respect to medical 

debt information of veterans due to inappropriate or delayed Veterans 

Choice Program billing payments, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 28, 2016 

Mr. DELANEY (for himself, Mr. HULTGREN, Mrs. WALORSKI, and Ms. 

SINEMA) introduced the following bill; which was referred to the Committee on Financial Services 

A BILL 

To amend the Fair Credit Reporting Act and the Fair Debt 

Collection Practices Act to delay the inclusion in consumer credit reports and to establish requirements for 

debt collectors with respect to medical debt information 

of veterans due to inappropriate or delayed Veterans 

Choice Program billing payments, 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, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Protecting Veterans 

3 Credit Act of 2016’’. 

4 SEC. 2. PURPOSE. 

5 The purpose of this Act is to rectify reporting of med6 ical debt included in a consumer report of a veteran due 

7 to inappropriate or delayed payment for hospital care or 

8 medical services provided pursuant to section 101 of the 

9 Veterans Access, Choice, and Accountability Act of 2014 

10 (38 U.S.C. 1701 note) and to clarify the process of debt 

11 collection for such medical debt. 

12 SEC. 3. AMENDMENTS TO FAIR CREDIT REPORTING ACT. 

13 (a) VETERAN’S CHOICE MEDICAL DEBT DEFINED.— 

14 Section 603 of the Fair Credit Reporting Act (15 U.S.C. 

15 1681a) is amended by adding at the end the following: 

16 ‘‘(z) VETERAN’S CHOICE MEDICAL DEBT.—The term 

17 ‘veteran’s Choice medical debt’ means a debt of a veteran 

18 arising from hospital care or medical services provided 

19 pursuant to section 101 of the Veterans Access, Choice, 

20 and Accountability Act of 2014 (38 U.S.C. 1701 note). 

21 ‘‘(aa) VETERAN.—The term ‘veteran’ has the mean22 ing given such term in section 101(2) of title 38, United 

23 States Code.’’. 

24 (b) EXCLUSION FOR VETERAN’S CHOICE MEDICAL

25 DEBT.—Section 605(a) of the Fair Credit Reporting Act 


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1 (15 U.S.C. 1681c) is amended by adding at the end the 

2 following: 

3 ‘‘(7) Any information related to a veteran’s 

4 Choice medical debt if the date on which such debt 

5 was placed for collection, charged to profit or loss, 

6 or subjected to any similar action antedates the re7 port by less than 1 year. 

8 ‘‘(8) Any information related to a fully paid or 

9 settled veteran’s Choice medical debt that had been 

10 characterized as delinquent, charged off, or in collec11 tion.’’. 

12 (c) REMOVAL OF VETERAN’S CHOICE MEDICAL

13 DEBT FROM CONSUMER REPORT.—Section 611 of the 

14 Consumer Credit Protection Act (15 U.S.C. 1681i) is 

15 amended— 

16 (1) in subsection (a)(1)(A), by inserting ‘‘and 

17 except as provided in subsection (g)’’ after ‘‘sub18 section (f)’’; and 

19 (2) by adding at the end the following new sub20 section: 

21 ‘‘(g) DISPUTE PROCESS FOR VETERAN’S CHOICE

22 MEDICAL DEBT.—A consumer may submit a notice along 

23 with proof of participation in the program established pur24 suant to section 101 of the Veterans Access, Choice, and 

25 Accountability Act of 2014 (38 U.S.C. 1701 note) to a 


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1 consumer reporting agency or a reseller to dispute the in2 clusion of a veteran’s Choice medical debt on a consumer 

3 report of the consumer. Not later than 30 days after re4 ceipt of the notice, the consumer reporting agency shall 

5 delete information relating to the veteran’s Choice medical 

6 debt from the file of the consumer and notify the furnisher 

7 and the consumer of that deletion.’’. 

8 SEC. 4. COMMUNICATIONS REGARDING VETERAN’S CHOICE 

9 MEDICAL DEBT. 

10 (a) IN GENERAL.—Section 809 of the Fair Debt Col11 lection Practices Act (15 U.S.C. 1692g) is amended— 

12 (1) in subsection (a), by inserting ‘‘, except for 

13 a veteran’s Choice medical debt as described in sub14 section (f),’’ after ‘‘any debt’’; and 

15 (2) by adding at the end the following: 

16 ‘‘(f) VETERAN’S CHOICE MEDICAL DEBT.— 

17 ‘‘(1) DEFINITIONS.—For purposes of this sub18 section: 

19 ‘‘(A) CONSUMER REPORTING AGENCY.— 

20 The term ‘consumer reporting agency’ has the 

21 meaning given such term under section 603(f) 

22 of the Fair Credit Reporting Act. 

23 ‘‘(B) VETERAN.—The term ‘veteran’ has 

24 the meaning given such term in section 101(2) 

25 of title 38, United States Code. 


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1 ‘‘(C) VETERAN’S CHOICE MEDICAL

2 DEBT.—The term ‘veteran’s Choice medical 

3 debt’ means a debt of a veteran arising from 

4 hospital care or medical services provided pur5 suant to section 101 of the Veterans Access, 

6 Choice, and Accountability Act of 2014 (38 

7 U.S.C. 1701 note). 

8 ‘‘(2) COMMUNICATIONS REGARDING VETERAN’S

9 CHOICE MEDICAL DEBT.—Within five days after the 

10 initial communication with a veteran in connection 

11 with the collection of a veteran’s Choice medical 

12 debt, a debt collector shall, unless the following in13 formation is contained in the initial communication 

14 or the veteran has paid the debt, send the veteran 

15 a written notice containing— 

16 ‘‘(A) the amount of the debt; 

17 ‘‘(B) the name of the creditor to whom the 

18 debt is owed; 

19 ‘‘(C) a statement that unless the veteran, 

20 within 1 year after the initial communication, 

21 disputes the validity of the debt, or any portion 

22 thereof, the debt will be assumed to be valid by 

23 the debt collector; 

24 ‘‘(D) a statement that if the veteran noti25 fies the debt collector in writing within such 1- 


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1 year period that the debt, or any portion there2 of, is disputed, the debt collector will obtain 

3 verification of the debt or a copy of a judgment 

4 against the veteran and a copy of such verifica5 tion or judgment will be mailed to the veteran 

6 by the debt collector; 

7 ‘‘(E) a statement that, upon the veteran’s 

8 written request within such 1-year period, the 

9 debt collector will provide the veteran with the 

10 name and address of the original creditor, if 

11 different from the current creditor; 

12 ‘‘(F) a statement that the debt collector 

13 will not report the debt to a consumer reporting 

14 agency until 1 year after the date on which the 

15 debt collector sends the statement; and 

16 ‘‘(G) a statement that the consumer may 

17 communicate with— 

18 ‘‘(i) an insurance company to deter19 mine coverage for the debt; 

20 ‘‘(ii) the Department of Veterans Af21 fairs to determine coverage for the debt or 

22 repayment options; or 

23 ‘‘(iii) the provider of hospital care or 

24 medical services provided pursuant to sec25 tion 101 of the Veterans Access, Choice, 


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1 and Accountability Act of 2014 (38 U.S.C. 

2 1701 note). 

3 ‘‘(3) COLLECTION OF VETERAN’S CHOICE MED4 ICAL DEBT.—If the veteran notifies the debt col5 lector in writing within the 1-year period described 

6 in paragraph (1) that the veteran’s Choice medical 

7 debt, or any portion thereof, is disputed, or that the 

8 veteran requests the name and address of the origi9 nal creditor, the debt collector shall cease collection 

10 of the veteran’s Choice medical debt, or any disputed 

11 portion thereof, until the debt collector obtains 

12 verification of the veteran’s Choice medical debt or 

13 a copy of a judgment, or the name and address of 

14 the original creditor, and a copy of such verification 

15 or judgment, or name and address of the original 

16 creditor, is mailed to the veteran by the debt col17 lector. Collection activities and communications that 

18 do not otherwise violate this title may continue dur19 ing the 1-year period referred to in paragraph (1) 

20 unless the veteran has notified the debt collector in 

21 writing that the veteran’s Choice medical debt, or 

22 any portion of the debt, is disputed or that the vet23 eran requests the name and address of the original 

24 creditor. Any collection activities and communication 

25 during the 1-year period may not overshadow or be 


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1 inconsistent with the disclosure of the veteran’s right 

2 to dispute the veteran’s Choice medical debt or re3 quest the name and address of the original cred4 itor.’’. 

5 SEC. 5. EFFECTIVE DATE. 

6 The amendments made by this Act shall take effect 

7 after the end of the 90-day period beginning on the date 

8 of the enactment of this Act. 

Æ 


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