A group of seven Senate Democrats have come together and introduced a bill that would amend the Fair Credit Reporting Act and Fair Debt Collection Practices Act to cover certain provisions related to the collection of medical-related debt.
A copy of S.3351, the “Medical Debt Relief Act of 2018” was introduced yesterday by Sen. Jeff Merkley [D-Ore.], Richard Blumenthal [D-Ct.], Dianne Feinstein [D-Calif.], Elizabeth Warren [D-Mass.], Dick Durbin [D-Ill.], Bob Menendez [D-N.J.] and Maggie Hassan [D-N.H.] can be accessed by clicking here. The bill has been referred to the Senate Banking Committee for consideration.
The bill would amend the FCRA to institute a 180-day waiting period before medical debt could be reported to an individual’s credit report and make sure that any medical debt which has been settled or paid off is removed from a credit report within 45 days of the date of payment or settlement.
As well, the bill would amend the FDCPA, specifically Section 1692(g), which covers the verification notice sent to individuals, to require collection agencies send a statement to individuals that includes a notification that the debt may not be reported to a credit bureau for 180 days from the date in which the statement is sent, and a notification that if the debt is settled or paid by the individual or an insurance agency during the 180-day period, the debt may not be reported to a credit bureau and that the individual may communicate with an insurance agency to determine coverage or apply for financial assistance.
“No one chooses to have a sudden illness or injury,” Merkley said in a statement announcing the bill’s introduction. “Americans shouldn’t be punished financially because they had the bad luck to be hit by medical misfortune. Restoring credit opportunities for these Americans is good for working America and good for our economy.”
