[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 2592 Introduced in Senate (IS)]
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114th CONGRESS
2d Session
S. 2592
To amend the Fair Credit Reporting Act by instituting a 180-day waiting
period before medical debt will be reported on a consumer's credit
report and removing paid-off and settled medical debts from credit
reports that have been fully paid or settled, to amend the Fair Debt
Collection Practices Act by providing for a timetable for verification
of medical debt and to increase the efficiency of credit markets with
more perfect information, and for other purposes.
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IN THE SENATE OF THE UNITED STATES
February 25, 2016
Mr. Merkley (for himself, Mr. Durbin, Mr. Blumenthal, Mr. Menendez, and
Mr. Schumer) introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To amend the Fair Credit Reporting Act by instituting a 180-day waiting
period before medical debt will be reported on a consumer's credit
report and removing paid-off and settled medical debts from credit
reports that have been fully paid or settled, to amend the Fair Debt
Collection Practices Act by providing for a timetable for verification
of medical debt and to increase the efficiency of credit markets with
more perfect information, and for other purposes.
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 ``Medical Debt Relief Act of 2016''.
SEC. 2. AMENDMENTS TO FAIR CREDIT REPORTING ACT.
(a) Medical Debt Defined.--Section 603 of the Fair Credit Reporting
Act (15 U.S.C. 1681a) is amended by adding at the end the following:
``(z) Medical Debt.--The term `medical debt' means a debt described
in section 604(g)(1)(C).''.
(b) Exclusion for Paid or Settled Medical Debt.--Section 605(a) of
the Fair Credit Reporting Act (15 U.S.C. 1681c(a)) is amended by adding
at the end the following:
``(7) 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 180 days.
``(8) Any information related to a fully paid or settled
medical debt that had been characterized as delinquent, charged
off, or in collection which, from the date of payment or
settlement, antedates the report by more than 45 days.''.
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) Medical debt.--The term `medical debt' means
a debt arising from the receipt of medical services,
products, or devices.
``(2) Notice of specific deadline.--Prior to furnishing
information regarding a medical debt to a consumer reporting
agency, a statement described under subsection (a)(3) shall
include the following information:
``(A) That the debt collector could report to a
consumer reporting agency regarding the debt at the end
of the 180-day period beginning on the date that the
debt collector sends the statement.
``(B) The specific date that is the end of the 180-
day period beginning on the date that the debt
collector sends the statement.
``(C) That, if the debt is settled or paid by the
consumer or an insurance company during the 180-day
period beginning on the date that the debt collector
sends the statement--
``(i) the debt will not be reported to a
consumer reporting agency; and
``(ii) the consumer may, during the 180-day
period--
``(I) communicate with an insurance
company to determine coverage for the
debt; or
``(II) apply for financial
assistance.
``(3) Communications by debt collector.--The debt collector
may not, during the 180-day period beginning on the date that
the debt collector sends the statement described under
paragraph (2), 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 180-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 180-day
period.''.
SEC. 4. EFFECTIVE DATE.
The amendments made by this Act shall take effect after the end of
the 6-month period beginning on the date of the enactment of this Act.
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