Title: Medical Debt Relief Act of 2018
Policy area: Finance and Financial Sector

Summary:
Medical Debt Relief Act of 2018
This bill amends the Fair Credit Reporting Act and the Fair Debt Collection Practices Act to modify requirements related to the reporting of medical debt. Specifically, a consumer reporting agency may not add certain medical debt information to a consumer credit report. Also, a debt collector may not report certain medical debt information to a consumer reporting agency within a specified time period and must notify the consumer prior to reporting such medical debt.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3351 Introduced in Senate (IS)]

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115th CONGRESS
  2d Session
                                S. 3351

 To amend the Fair Credit Reporting Act to institute a 180-day 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

                            August 16, 2018

 Mr. Merkley (for himself, Mr. Blumenthal, Mrs. Feinstein, Ms. Warren, 
  Mr. Durbin, Mr. Menendez, and Ms. Hassan) 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 180-day 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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Medical Debt Relief Act of 2018''.

SEC. 2. AMENDMENTS TO FAIR CREDIT REPORTING ACT.

    (a) Medical Debt Defined.--
            (1) In general.--Section 603 of the Fair Credit Reporting 
        Act (15 U.S.C. 1681a) is amended by adding at the end the 
        following:
    ``(z) Medical Debt.--The term `medical debt' means a debt described 
in section 604(g)(1)(C).''.
            (2) Technical and conforming amendments.--On the date 
        described in section 302(e) of the Economic Growth, Regulatory 
        Relief, and Consumer Protection Act (Public Law 115-174), 
        subsection (z) of section 603 of the Fair Credit Reporting Act 
        (15 U.S.C. 1681a), as added by paragraph (1), shall be 
        redesignated as subsection (bb) and moved to appear after 
        subsection (aa).
    (b) Exclusion for Paid or Settled Medical Debt.--
            (1) In general.--Section 605(a) of the Fair Credit 
        Reporting Act (15 U.S.C. 1681c(a)) is amended by adding at the 
        end the following:
            ``(7) Any information relating to a medical debt if the 
        date on which the debt was placed for collection, charged to 
        profit or loss, or subjected to any similar action antedates 
        the report by less than 180 days.
            ``(8) Any information relating to a fully paid or settled 
        medical debt that had been characterized as delinquent, charged 
        off, or in collection which, from the date of payment or 
        settlement, antedates the report by more than 45 days.''.
            (2) Technical and conforming amendments.--On the date 
        described in section 302(e) of the Economic Growth, Regulatory 
        Relief, and Consumer Protection Act (Public Law 115-174), 
        paragraphs (7) and (8) of section 605(a) of the Fair Credit 
        Reporting Act (15 U.S.C. 1681c(a)), as added by paragraph (1) 
        of this subsection, shall be redesignated as paragraphs (9) and 
        (10), respectively, and moved to appear after paragraph (8).

SEC. 3. AMENDMENTS TO THE FAIR DEBT COLLECTION PRACTICES ACT.

    (a) In General.--Section 809 of the Fair Debt Collection Practices 
Act (15 U.S.C. 1692g) is amended by adding at the end the following:
    ``(f) Additional Notice Requirements for Medical Debt.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Consumer reporting agency.--The term 
                `consumer reporting agency' has the meaning given the 
                term in section 603(f) of the Fair Credit Reporting 
                Act.
                    ``(B) Medical debt.--The term `medical debt' means 
                a debt arising from the receipt of medical services, 
                products, or devices.
            ``(2) Notice about credit reporting.--Before furnishing 
        information regarding a medical debt of a consumer to a 
        consumer reporting agency, the person furnishing the 
        information shall send a statement to the consumer that 
        includes the following:
                    ``(A) A notification that the medical debt may not 
                be reported to a consumer reporting agency until the 
                end of the 180-day period beginning on the date on 
                which the person sends the statement.
                    ``(B) The specific date that is the end of the 180-
                day period beginning on the date on which the person 
                sends the statement.
                    ``(C) A notification that, if the debt is settled 
                or paid by the consumer or an insurance company during 
                the 180-day period beginning on the date on which the 
                person sends the statement--
                            ``(i) the debt may not be reported to a 
                        consumer reporting agency; and
                            ``(ii) the consumer may, during that 180-
                        day period--
                                    ``(I) communicate with an insurance 
                                company to determine coverage for the 
                                debt; or
                                    ``(II) apply for financial 
                                assistance.
            ``(3) No reporting during 180-day period.--
                    ``(A) In general.--During the 180-day period 
                described in paragraph (2), no person may communicate 
                with, or report any information to, any consumer 
                reporting agency regarding a debt described in that 
                paragraph.
                    ``(B) Rule of construction.--Nothing in this 
                paragraph may be construed to affect when a debt 
                collector may engage in activities to collect or 
                attempt to collect any debt owed or due or asserted to 
                be owed.
            ``(4) Reporting after the 180-day period.--Nothing in this 
        subsection shall prohibit a person from communicating with, or 
        reporting any information to, a consumer reporting agency 
        regarding a medical debt of a consumer after the end of the 
        180-day period described in paragraph (2) with respect to the 
        debt.''.

SEC. 4. EFFECTIVE DATE.

    Except as otherwise expressly provided, the amendments made by this 
Act shall take effect on the date that is 180 days after the date of 
enactment of this Act.
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