Protecting Veterans Credit Act of 2016

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. Short title This Act may be cited as the Protecting Veterans Credit Act of 2016 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 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 (z) Veteran’s Choice medical debt The term veteran’s Choice medical debt 38 U.S.C. 1701 (aa) Veteran The term veteran . (b) Exclusion for veteran’s Choice medical debt Section 605(a) of the Fair Credit Reporting Act ( 15 U.S.C. 1681c (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 (1) in subsection (a)(1)(A), by inserting and except as provided in subsection (g) subsection (f) (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 . 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 (1) in subsection (a), by inserting , except for a veteran’s Choice medical debt as described in subsection (f), any debt (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 (B) Veteran The term veteran (C) Veteran’s Choice medical debt The term veteran’s Choice medical debt 38 U.S.C. 1701 (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 (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. . 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.

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.