Protecting Veterans Credit Act of 2018

To amend the Fair Credit Reporting 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 billing payments or reimbursements from the Department of Veterans Affairs, and for other purposes. 1. Short title This Act may be cited as the Protecting Veterans Credit Act of 2018 2. Purpose The purpose of this Act is to rectify problematic reporting of medical debt included in a consumer report of a veteran due to inappropriate or delayed payment for hospital care, medical services, or extended care services provided in a non-Department of Veterans Affairs facility under the laws administered by the Secretary of Veterans Affairs. 3. Amendments to Fair Credit Reporting Act (a) Veteran’s medical debt defined Section 603 of the Fair Credit Reporting Act ( 15 U.S.C. 1681a (z) Veteran The term veteran (aa) Veteran's medical debt The term veteran’s medical debt (1) means a medical collection debt of a veteran owed to an eligible non-Department of Veterans Affairs health care provider that was submitted to the Department for payment for health care authorized by the Department of Veterans Affairs; and (2) includes medical collection debt that the Department of Veterans Affairs has wrongfully charged a veteran. . (b) Exclusion for veteran’s medical debt Section 605(a) of the Fair Credit Reporting Act ( 15 U.S.C. 1681c(a) (7) Any information related to a veteran’s medical debt if the date on which the hospital care, medical services, or extended care services was rendered relating to the debt antedates the report by less than one year if the consumer reporting agency has actual knowledge that the information is related to a veteran’s medical debt and the consumer reporting agency is in compliance with its obligation under section 4(e) of the Protecting Veterans Credit Act of 2018. (8) Any information related to a fully paid or settled veteran’s medical debt that had been characterized as delinquent, charged off, or in collection if the consumer reporting agency has actual knowledge that the information is related to a veteran’s medical debt and the consumer reporting agency is in compliance with its obligation under section 4(e) of the Protecting Veterans Credit Act of 2018. . (c) Update to summary of rights Section 609(c)(1)(B) of the Fair Credit Reporting Act ( 15 U.S.C. 1681g(c)(1)(B) (1) in clause (v), by striking and (2) in clause (vi), by striking the period and inserting ; and (3) by adding at the end the following: (vii) the right of a veteran to dispute the inclusion of veteran’s medical debt under section 611. . (d) Removal of veteran’s medical debt from consumer report Section 611 of the Fair Credit Reporting 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: (g) Dispute process for veteran’s medical debt (1) In general With respect to a veteran’s medical debt, the veteran may submit a notice described in paragraph (2), proof of liability of the Department of Veterans Affairs for payment of that debt, or documentation that the Department of Veterans Affairs is in the process of making payment for authorized hospital care, medical services, or extended care services rendered to a consumer reporting agency or a reseller to dispute the inclusion of that debt on a consumer report of the veteran. (2) Notification to veteran The Department of Veterans Affairs shall submit to a veteran, not later than 30 days after the Department of Veterans Affairs assumes such liability, a written notice that the Department of Veterans Affairs has assumed liability for part or all of a veteran’s medical debt. (3) Deletion of information from file If a consumer reporting agency receives notice, proof of liability, or documentation under paragraph (1), the consumer reporting agency, not later than 30 days after receipt, and free of charge to the veteran, shall delete all information relating to the veteran’s medical debt from the file of the veteran and notify the furnisher and the veteran of that deletion. . 4. Verification of veteran’s medical debt (a) Definitions For purposes of this section— (1) the term consumer reporting agency 15 U.S.C. 1681a (2) the terms veteran veteran’s medical debt 15 U.S.C. 1681a (b) Establishment Not later than one year after the date of enactment of this Act, the Secretary of Veterans Affairs shall establish a database to allow consumer reporting agencies to verify whether a debt furnished to a consumer reporting agency is a veteran’s medical debt. (c) Database features (1) In general The Secretary of Veterans Affairs shall ensure that the database established under subsection (b), to the extent permitted by law, provides consumer reporting agencies with— (A) sufficiently detailed and specific information to verify whether a debt being furnished to the consumer reporting agency is a veteran’s medical debt; (B) access to verification information in a secure electronic format; (C) timely access to verification information; and (D) any other features that would promote the efficient, timely, and secure delivery of information that consumer reporting agencies could use to verify whether a debt is a veteran’s medical debt. (2) Security and confidentiality The Secretary shall ensure that, in maintaining and allowing access to the database established under subsection (b), the security and confidentiality of nonpublic personal information is maintained. (d) Stakeholder input Prior to establishing the database for verification under subsection (b), the Secretary of Veterans Affairs shall publish in the Federal Register a notice and request for comment that solicits input from the public. (e) Verification Provided the database established under subsection (b) is fully functional and the data available to consumer reporting agencies, a consumer reporting agency shall use the database as a means to identify a veteran’s medical debt pursuant to paragraphs (7) and (8) of section 605(a) of the Fair Credit Reporting Act ( 15 U.S.C. 1681c(a) 5. Effective date The amendments made by this Act shall take effect on the date that is one year after the date of enactment of this Act. November 14, 2018 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

Summary: Protecting Veterans Credit Act of 2018 This bill amends the Fair Credit Reporting Act to limit, and establish a dispute process and verification procedures with respect to, the inclusion of a veteran's medical debt in a consumer credit report.