II 

116TH CONGRESS 

1ST SESSION S. 1581 

To amend the Fair Credit Reporting Act to institute a 1-year waiting period 

before medical debt will be reported on a consumer’s credit report and 

to remove paid-off and settled medical debts from credit reports that 

have been fully paid or settled, to amend the Fair Debt Collection 

Practices Act to provide a timetable for verification of medical debt 

and to increase the efficiency of credit markets with more perfect information, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 21, 2019 

Mr. MERKLEY (for himself, Mr. BLUMENTHAL, Ms. WARREN, Mr. MENENDEZ, and Mr. DURBIN) introduced the following bill; which was read 

twice and referred to the Committee on Banking, Housing, and Urban 

Affairs 

A BILL 

To amend the Fair Credit Reporting Act to institute a 1- 

year waiting period before medical debt will be reported 

on a consumer’s credit report and to remove paid-off 

and settled medical debts from credit reports that have 

been fully paid or settled, to amend the Fair Debt Collection Practices Act to provide a timetable for verification 

of medical debt and to increase the efficiency of credit 

markets with more perfect information, and for other 

purposes. 


kjohnson on DSK79L0C42 with BILLS
2 

•S 1581 IS

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 ‘‘Medical Debt Relief 

5 Act of 2019’’. 

6 SEC. 2. AMENDMENTS TO FAIR CREDIT REPORTING ACT. 

7 (a) MEDICAL DEBT DEFINED.—Section 603 of the 

8 Fair Credit Reporting Act (15 U.S.C. 1681a) is amended 

9 by adding at the end the following: 

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

11 means a debt described in section 604(g)(1)(C).’’. 

12 (b) EXCLUSION FOR PAID OR SETTLED MEDICAL

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

14 (15 U.S.C. 1681c(a)) is amended by adding at the end 

15 the following: 

16 ‘‘(9) Any information relating to a medical debt if 

17 the date on which the debt was placed for collection, 

18 charged to profit or loss, or subjected to any similar action 

19 antedates the report by less than 1 year. 

20 ‘‘(10) Any information relating to a fully paid or set21 tled medical debt that had been characterized as delin22 quent, charged off, or in collection which, from the date 

23 of payment or settlement, antedates the report by more 

24 than 45 days.’’. 


kjohnson on DSK79L0C42 with BILLS
3 

•S 1581 IS

1 SEC. 3. AMENDMENTS TO THE FAIR DEBT COLLECTION 

2 PRACTICES ACT. 

3 (a) IN GENERAL.—Section 809 of the Fair Debt Col4 lection Practices Act (15 U.S.C. 1692g) is amended by 

5 adding at the end the following: 

6 ‘‘(f) ADDITIONAL NOTICE REQUIREMENTS FOR MED7 ICAL DEBT.— 

8 ‘‘(1) DEFINITIONS.—In this subsection: 

9 ‘‘(A) CONSUMER REPORTING AGENCY.— 

10 The term ‘consumer reporting agency’ has the 

11 meaning given the term in section 603(f) of the 

12 Fair Credit Reporting Act (15 U.S.C. 

13 1681a(f)). 

14 ‘‘(B) MEDICAL DEBT.—The term ‘medical 

15 debt’ means a debt arising from the receipt of 

16 medical services, products, or devices. 

17 ‘‘(2) NOTICE ABOUT CREDIT REPORTING.—Be18 fore furnishing information regarding a medical debt 

19 of a consumer to a consumer reporting agency, the 

20 person furnishing the information shall send a state21 ment to the consumer that includes the following: 

22 ‘‘(A) A notification that the medical debt 

23 may not be reported to a consumer reporting 

24 agency until the end of the 1-year period begin25 ning on the date on which the person sends the 

26 statement. 


kjohnson on DSK79L0C42 with BILLS
4 

•S 1581 IS

1 ‘‘(B) The specific date that is the end of 

2 the 1-year period beginning on the date on 

3 which the person sends the statement. 

4 ‘‘(C) A notification that, if the debt is set5 tled or paid by the consumer or an insurance 

6 company during the 1-year period beginning on 

7 the date on which the person sends the state8 ment— 

9 ‘‘(i) the debt may not be reported to 

10 a consumer reporting agency; and 

11 ‘‘(ii) the consumer may, during that 

12 1-year period— 

13 ‘‘(I) communicate with an insur14 ance company to determine coverage 

15 for the debt; or 

16 ‘‘(II) apply for financial assist17 ance. 

18 ‘‘(3) NO REPORTING DURING 1-YEAR PERIOD.— 

19 ‘‘(A) IN GENERAL.—During the 1-year pe20 riod described in paragraph (2), no person may 

21 communicate with, or report any information 

22 to, any consumer reporting agency regarding a 

23 debt described in that paragraph. 

24 ‘‘(B) RULE OF CONSTRUCTION.—Nothing 

25 in subparagraph (A) may be construed to affect 


kjohnson on DSK79L0C42 with BILLS
5 

•S 1581 IS

1 when a debt collector may engage in activities 

2 to collect or attempt to collect any debt owed or 

3 due or asserted to be owed. 

4 ‘‘(4) REPORTING AFTER THE 1-YEAR PERIOD.— 

5 Nothing in this subsection shall prohibit a person 

6 from communicating with, or reporting any informa7 tion to, a consumer reporting agency regarding a 

8 medical debt of a consumer after the end of the 1- 

9 year period described in paragraph (2) with respect 

10 to the debt.’’. 

11 SEC. 4. EFFECTIVE DATE. 

12 The amendments made by this Act shall take effect 

13 on the date that is 180 days after the date of enactment 

14 of this Act. 

Æ 


kjohnson on DSK79L0C42 with BILLS