A pair of bills have been introduced — one in the House of Representatives and one in the Senate — that seek to amend the Fair Credit Reporting Act to prohibit the inclusion of medical debt items on a consumer’s credit report as a show of support for the Consumer Financial Protection Bureau’s efforts to do the same.
S. 3103 was introduced last week by Sen. Jeff Merkley [D-Ore.] and features three Democratic co-sponsors, including Sen. Robert Menendez [D-N.J.] and Sen. John Fetterman [D-Penn.]. H.R. 6003, called the Medical Debt Relief Act, was introduced the same day by Rep. Katie Porter [D-Calif.] and features nearly two dozen co-sponsors, all of them Democrats.
While a full text of either bill is not yet available, the bill would ban all medical debt from appearing on credit reports and prohibit creditors from considering the amount of medical debt a consumer owes when making decisions about whether to extend credit or not. The objectives of the two bills appear to align with that of the CFPB, which last month announced it was initiating a rulemaking proceeding to remove medical debts from credit reports.
The bill “demonstrates Congress’ support for the CFPB using its existing authority to put these principles into federal regulations, and would cement these principles into law,” according to a press release from Rep. Porter.
“Getting medical treatment shouldn’t force families into lifetimes of financial hardship,” said Rep. Porter, a former consumer law professor, in a statement.“Under the status quo, unexpected and lifesaving health care costs can saddle Americans with debt and tank their credit scores. My bill with Senator Merkley would prohibit credit bureaus from reporting medical debt, making it easier for people bogged down with medical bills to rent an apartment, buy a home, or get a loan.”
The bills from Rep. Porter and Sen. Merkley are just the latest in their attempts to regulate medical debt collection. Back in 2021
