[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2211 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 2211

   To amend the Fair Debt Collection Practices Act to provide for a 
    timetable for verification of medical debt and to increase the 
      efficiency of credit markets with more perfect information.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 24, 2013

Mr. Gary G. Miller of California (for himself and Mrs. McCarthy of New 
    York) 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 for a 
    timetable for verification of medical debt and to increase the 
      efficiency of credit markets with more perfect information.

    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 ``Accuracy in Reporting Medical Debt 
Act of 2013''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) A reduction in a consumer's credit score can impede 
        consumers' economic activity and consumer borrowing capacity.
            (2) A 2012 Federal Trade Commission report found that as 
        many as 40 million Americans have mistakes on their credit 
        report.
            (3) According to credit evaluators, medical debt 
        collections are inconsistently reported, and of questionable 
        value in predicting future payment performance.
            (4) Medical debt that has been completely paid off or 
        settled will remain on a consumer's credit report and can 
        significantly damage a consumer's credit score for 7 years.
            (5) Creditworthy consumers may be denied credit, pay higher 
        interest rates, or pay higher fees when buying or refinancing a 
        home loan or obtaining credit for credit-related products due 
        to disputed medical debt on their credit reports.

SEC. 3. VALIDATION OF MEDICAL DEBT.

    (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) Validation of Medical Debt.--For purposes of medical debt, 
the following shall apply:
            ``(1) Definitions.--For purposes of this subsection:
                    ``(A) Consumer reporting agency.--The term 
                `consumer reporting agency' has the meaning given such 
                term under section 603(f) of the Fair Credit Reporting 
                Act.
                    ``(B) Disputes the validity.--With respect to a 
                medical debt, a consumer disputes the validity of such 
                debt if the consumer states, in writing, that either--
                            ``(i) the consumer is continuing to 
                        communicate with an insurance company to 
                        determine coverage for the debt;
                            ``(ii) the consumer disputes the amount or 
                        existence of the debt; or
                            ``(iii) the consumer has applied for 
                        financial assistance, provides evidence of such 
                        application, and is awaiting a determination.
                    ``(C) Medical debt.--The term `medical debt' means 
                a debt arising from the receipt of medical services, 
                products, or devices.
            ``(2) Notice of specific deadline.--When sending a 
        statement described under subsection (a)(3), the debt collector 
        shall include the following information:
                    ``(A) That the debt collector could report to a 
                consumer reporting agency regarding the debt, if the 
                consumer does not respond to the notice within 30 days 
                from the date on which the consumer received the 
                statement.
                    ``(B) That, if the consumer does respond, the debt 
                collector could report to a consumer reporting agency 
                regarding the debt at the end of the 120-day period 
                beginning on the date that the debt collector sends the 
                statement.
                    ``(C) The specific date that is the end of the 120-
                day period beginning on the date that the debt 
                collector sends the statement.
            ``(3) Effect of consumer notice.--If the consumer notifies 
        the debt collector, in writing, within the 30-day period 
        described under subsection (a), that the consumer disputes the 
        validity of the debt, the debt collector may not, during the 
        120-day period beginning on the date that the debt collector 
        sends the written notice described under subsection (a), 
        communicate with, or report any information to, any consumer 
        reporting agency regarding such debt. This paragraph shall have 
        no effect on when a debt collector may or may not engage in 
        activities to collect or attempt to collect any debt owed or 
        due or asserted to be owed.
            ``(4) Reporting after the 120-day period.--Nothing in this 
        subsection shall prohibit the debt collector from communicating 
        with, or reporting any information to, any consumer reporting 
        agency regarding such debt after the end of such 120-day 
        period.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect after the end of the 6-month period beginning on the date 
of the enactment of this Act.
                                 <all>