116 HR 5330 IH: Consumer Protection for Medical Debt Collections Act U.S. House of Representatives 2019-12-05 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I116th CONGRESS1st SessionH. R. 5330IN THE HOUSE OF REPRESENTATIVESDecember 5, 2019Ms. Tlaib introduced the following bill; which was referred to the Committee on Financial ServicesA BILLTo 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.