Consumer Protection for Medical Debt Collections Act

Bill: 116-hr-5330
Sponsor: full_name: Rep. Tlaib, Rashida [D-MI-13]
Introduced: 2019-12-05
Policy area: Finance and Financial Sector
Subjects: Consumer credit

Debt collection

Health care costs and insurance
Latest action: action_date: 2020-12-15
text: Placed on the Union Calendar, Calendar No. 537.

Summaries:
action_date: 2019-12-05
action_desc: Introduced in House
text: <p><b>Consumer Protection for Medical Debt Collections Act</b></p> <p>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. </p>

action_date: 2020-12-15
action_desc: Reported to House
text: <p><b>Consumer Protection for Medical Debt Collections Act </b></p> <p>This bill restricts the inclusion of medical debt on a consumer credit report. </p> <p>A consumer reporting agency is prohibited from including on a consumer credit report, and a person is prohibited from reporting to such agency (1) medical debt arising from a medically necessary procedure, or (2) other medical debt less than a year old. </p> <p>A person reporting medical debt to a consumer reporting agency must first provide notice to that consumer regarding the restrictions on including medical debt on credit reports. </p> <p>Furthermore, a debt collector is prohibited from collecting a medical debt less than two years old.</p>

tv_txt: I 116th CONGRESS 1st Session H. R. 5330 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.

1. Short title This Act may be cited as the Consumer Protection for Medical Debt Collections Act . 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. 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.

tv_txt: IB Union Calendar No. 537 116th CONGRESS 2d Session H. R. 5330 [Report No. 116–653] IN THE HOUSE OF REPRESENTATIVES December 5, 2019 Ms. Tlaib introduced the following bill; which was referred to the Committee on Financial Services December 15, 2020 Reported with amendments, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Strike out all after the enacting clause and insert the part printed in italic For text of introduced bill, see copy of bill as introduced on December 5, 2019 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.

1. Short title This Act may be cited as the Consumer Protection for Medical Debt Collections Act . 2. Amendments to the Fair Debt Collection Practices Act (a) Definition Section 803 of the Fair Debt Collection Practices Act ( 15 U.S.C. 1692a ) is amended by adding at the end the following: (9) The term medical debt means a debt arising from the receipt of medical services, products, or devices. . (b) Unfair practices Section 808 of the Fair Debt Collection Practices Act ( 15 U.S.C. 1692f ) is amended by adding at the end the following: (9) Engaging in activities to collect or attempting to collect a medical debt owed or due or asserted to be owed or due by a consumer, before the end of the 2-year period beginning on the date that the first payment with respect to such medical debt is due. . 3. Prohibition on consumer reporting agencies reporting certain medical debt (a) Definition Section 603 of the Fair Credit Reporting Act ( 15 U.S.C. 1681a ) is amended by adding at the end the following: (bb) Medical debt The term medical debt means a debt arising from the receipt of medical services, products, or devices. (cc) Medically necessary procedure The term medically necessary procedure means— (1) health care services or supplies needed to diagnose or treat an illness, injury, condition, disease, or its symptoms and that meet accepted standards of medicine; and (2) health care to prevent illness or detect illness at an early stage, when treatment is likely to work best (including preventive services such as pap tests, flu shots, and screening mammograms). . (b) 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 paragraphs: (9) Any information related to a debt arising from a medically necessary procedure. (10) Any information related to a 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 365 calendar days. . 4. Requirements for furnishers of medical debt information (a) Additional notice requirements for medical debt Section 623 of the Fair Credit Reporting Act ( 15 U.S.C. 1681s-2 ) is amended by adding at the end the following: (f) Additional notice requirements for medical debt 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: (1) A notification that the medical debt— (A) may not be included on a consumer report made by a consumer reporting agency until the later of the date that is 365 days after— (i) the date on which the person sends the statement; (ii) with respect to the medical debt of a borrower demonstrating hardship, a date determined by the Director of the Bureau; or (iii) the date described under section 605(a)(10); and (B) may not ever be included on a consumer report made by a consumer reporting agency, if the medical debt arises from a medically necessary procedure. (2) A notification that, if the debt is settled or paid by the consumer or an insurance company before the end of the period described under paragraph (1)(A), the debt may not be reported to a consumer reporting agency. (3) A notification that the consumer may— (A) communicate with an insurance company to determine coverage for the debt; or (B) apply for financial assistance. . (b) Furnishing of medical debt information Section 623 of the Fair Credit Reporting Act ( 15 U.S.C. 1681s-2 ), as amended by subsection (a), is further amended by adding at the end the following: (g) Furnishing of medical debt information (1) Prohibition on reporting debt related to medically necessary procedures No person shall furnish any information to a consumer reporting agency regarding a debt arising from a medically necessary procedure. (2) Treatment of other medical debt information With respect to a medical debt not described under paragraph (1), no person shall furnish any information to a consumer reporting agency regarding such debt before the end of the 365-day period beginning on the later of— (A) the date on which the person sends the statement described under subsection (f) to the consumer; (B) with respect to the medical debt of a borrower demonstrating hardship, a date determined by the Director of the Bureau; or (C) the date described in section 605(a)(10). (3) Treatment of settled or paid medical debt With respect to a medical debt not described under paragraph (1), no person shall furnish any information to a consumer reporting agency regarding such debt if the debt is settled or paid by the consumer or an insurance company before the end of the 365-day period described under paragraph (2). (4) Borrower demonstrating hardship defined In this subsection, and with respect to a medical debt, the term borrower demonstrating hardship means a borrower or a class of borrowers who, as determined by the Director of the Bureau, is facing or has experienced unusual extenuating life circumstances or events that result in severe financial or personal barriers such that the borrower or class of borrowers does not have the capacity to repay the medical debt. . 5. Effective date This Act and the amendments made by this Act shall take effect on the date that is 180 days after the date of enactment of this Act.

Amend the title so as to read: A bill to amend the Fair Debt Collection Practices Act to provide a timetable for the collection of medical debt by debt collectors, to amend the Fair Credit Reporting Act to prohibit consumer reporting agencies from issuing consumer reports containing information about debts related to medically necessary procedures, and for other purposes. .

December 15, 2020 Reported with amendments, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed