(1) A reduction in a consumer’s credit score 
can impede consumers’ economic activity and con-
sumer borrowing capacity. 
(2) A 2012 Federal Trade Commission report 
found that as many as 40 million Americans have 
mistakes on their credit report. 
(3) According to credit evaluators, medical debt 
collections are inconsistently reported, and of ques-
tionable value in predicting future payment perform-
ance. 
(4) Medical debt that has been completely paid 
off or settled will remain on a consumer’s credit re-
port and can significantly damage a consumer’s 
credit score for 7 years. 
(5) Creditworthy consumers may be denied 
credit, pay higher interest rates, or pay higher fees 
when buying or refinancing a home loan or obtaining 
credit for credit-related products due to disputed 
medical debt on their credit reports. 
SEC. 3. VALIDATION OF MEDICAL DEBT. 
(a) IN GENERAL.—Section 809 of the Fair Debt Col-
lection Practices Act (15 U.S.C. 1692g) is amended by 
adding at the end the following: 
‘‘(f) VALIDATION OF MEDICAL DEBT.—For purposes 
of medical debt, the following shall apply: 
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‘‘(1) DEFINITIONS.—For purposes of this sub-
section: 
‘‘(A) CONSUMER
REPORTING
AGENCY.— 
The term ‘consumer reporting agency’ has the 
meaning given such term under section 603(f) 
of the Fair Credit Reporting Act. 
‘‘(B) DISPUTES THE VALIDITY.—With re-
spect to a medical debt, a consumer disputes 
the validity of such debt if the consumer states, 
in writing, that either— 
‘‘(i) the consumer is continuing to 
communicate with an insurance company 
to determine coverage for the debt; 
‘‘(ii) 
the 
consumer 
disputes 
the 
amount or existence of the debt; or 
‘‘(iii) the consumer has applied for fi-
nancial assistance, provides evidence of 
such application, and is awaiting a deter-
mination. 
‘‘(C) MEDICAL DEBT.—The term ‘medical 
debt’ means a debt arising from the receipt of 
medical services, products, or devices. 
‘‘(2) NOTICE OF SPECIFIC DEADLINE.—When 
sending a statement described under subsection 
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(a)(3), the debt collector shall include the following 
information: 
‘‘(A) That the debt collector could report 
to a consumer reporting agency regarding the 
debt, if the consumer does not respond to the 
notice within 30 days from the date on which 
the consumer received the statement. 
‘‘(B) That, if the consumer does respond, 
the debt collector could report to a consumer 
reporting agency regarding the debt at the end 
of the 120-day period beginning on the date 
that the debt collector sends the statement. 
‘‘(C) The specific date that is the end of 
the 120-day period beginning on the date that 
the debt collector sends the statement. 
‘‘(3) EFFECT OF CONSUMER NOTICE.—If the 
consumer notifies the debt collector, in writing, with-
in the 30-day period described under subsection (a), 
that the consumer disputes the validity of the debt, 
the debt collector may not, during the 120-day pe-
riod beginning on the date that the debt collector 
sends the written notice described under subsection 
(a), communicate with, or report any information to, 
any consumer reporting agency regarding such debt. 
This paragraph shall have no effect on when a debt 
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collector may or may not engage in activities to col-
lect or attempt to collect any debt owed or due or 
asserted to be owed. 
‘‘(4) REPORTING
AFTER
THE
120-DAY
PE-
RIOD.—Nothing in this subsection shall prohibit the 
debt collector from communicating with, or reporting 
any information to, any consumer reporting agency 
regarding such debt after the end of such 120-day 
period.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect after the end of the 6- 
month period beginning on the date of the enactment of 
this Act. 
Æ 
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