Title: Consumer Protection for Medical Debt Collections Act
Policy area: Finance and Financial Sector

Summary:
Consumer Protection for Medical Debt Collections Act
This bill modifies requirements related to the reporting of medical debt. Specifically, a consumer reporting agency may not add to a consumer credit report any information related to a debt arising from a medically necessary procedure. Also, a debt collector (1) must wait one year before reporting other medical debt to a consumer reporting agency, (2) must notify the consumer prior to reporting such medical debt, and (3) may not attempt to collect a medical debt before the end of the one-year period.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5330 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 5330

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, to prohibit consumer 
reporting agencies from issuing consumer reports containing information 
  about debts related to medically necessary procedure, about and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 5, 2019

  Ms. Tlaib introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
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, to prohibit consumer 
reporting agencies from issuing consumer reports containing information 
  about debts related to medically necessary procedure, about 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 ``Consumer Protection for Medical Debt 
Collections Act''.

SEC. 2. 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 
                (15 U.S.C. 1681a(f)).
                    ``(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 1-year period beginning on the later of--
                            ``(i) the date on which the person sends 
                        the statement; and
                            ``(ii) the last date on which the consumer 
                        made any payment to the person with respect to 
                        the medical debt.
                    ``(B) A notification that, if the debt is settled 
                or paid by the consumer or an insurance company before 
                the end of the 1-year period described under 
                subparagraph (A)--
                            ``(i) the debt may not be reported to a 
                        consumer reporting agency; and
                            ``(ii) the consumer may, any time before 
                        the end of such that 1-year period--
                                    ``(I) communicate with an insurance 
                                company to determine coverage for the 
                                debt; or
                                    ``(II) apply for financial 
                                assistance.
            ``(3) No reporting before the end of the 1-year period.--
                    ``(A) In general.--Before the end of the 1-year 
                period described in paragraph (2)(A), no person may 
                communicate with, or report any information to, any 
                consumer reporting agency regarding a debt described in 
                that paragraph.
                    ``(B) Reporting after the end of the 1-year 
                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 1-year 
                period described in paragraph (2)(A) with respect to 
                the debt.
            ``(4) No debt collection before the end of the 1-year 
        period.--With respect to a medical debt, before the end of the 
        1-year period described in paragraph (2)(A), a debt collector 
        may not engage in activities to collect or attempt to collect 
        such medical debt owed or due or asserted to be owed.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date that is 180 days after the date of enactment of this 
Act.

SEC. 3. PROHIBITION ON REPORTING MEDICALLY NECESSARY PROCEDURES.

    (a) 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 new 
paragraph:
            ``(9) Any information related to a debt arising from a 
        medically necessary procedure.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date that is 180 days after the date of enactment of this 
Act.
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