[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1773 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 1773
To amend the Fair Debt Collection Practices Act to provide a timetable
for the collection of medical debt by debt collectors, to amend the
Fair Credit Reporting Act to prohibit consumer reporting agencies from
issuing consumer reports containing information about debts related to
medically necessary procedures, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 23, 2023
Ms. Tlaib introduced the following bill; which was referred to the
Committee on Financial Services
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A BILL
To amend the Fair Debt Collection Practices Act to provide a timetable
for the collection of medical debt by debt collectors, to amend the
Fair Credit Reporting Act to prohibit consumer reporting agencies from
issuing consumer reports containing information about debts related to
medically necessary procedures, 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 ``Consumer Protection for Medical Debt
Collections Act''.
SEC. 2. AMENDMENTS TO THE FAIR DEBT COLLECTION PRACTICES ACT.
(a) Definition.--Section 803 of the Fair Debt Collection Practices
Act (15 U.S.C. 1692a) is amended by adding at the end the following:
``(9) The term `medical debt' means a debt arising
from the receipt of medical services, products, or
devices.''.
(b) Unfair Practices.--Section 808 of the Fair Debt Collection
Practices Act (15 U.S.C. 1692f) is amended by adding at the end the
following:
``(9) Engaging in activities to collect or
attempting to collect a medical debt owed or due or
asserted to be owed or due by a consumer, before the
end of the 2-year period beginning on the date that the
first payment with respect to such medical debt is
due.''.
SEC. 3. PROHIBITION ON CONSUMER REPORTING AGENCIES REPORTING CERTAIN
MEDICAL DEBT.
(a) Definition.--Section 603 of the Fair Credit Reporting Act (15
U.S.C. 1681a) is amended by adding at the end the following:
``(bb) Medical Debt.--The term `medical debt' means a debt arising
from the receipt of medical services, products, or devices.
``(cc) Medically Necessary Procedure.--The term `medically
necessary procedure' means--
``(1) health care services or supplies needed to diagnose
or treat an illness, injury, condition, disease, or its
symptoms and that meet accepted standards of medicine; and
``(2) health care to prevent illness or detect illness at
an early stage, when treatment is likely to work best
(including preventive services such as pap tests, flu shots,
and screening mammograms).''.
(b) 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
paragraphs:
``(9) Any information related to a debt arising from a
medically necessary procedure.
``(10) 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 365 calendar days.''.
SEC. 4. REQUIREMENTS FOR FURNISHERS OF MEDICAL DEBT INFORMATION.
(a) Additional Notice Requirements for Medical Debt.--Section 623
of the Fair Credit Reporting Act (15 U.S.C. 1681s-2) is amended by
adding at the end the following:
``(f) Additional Notice Requirements for Medical Debt.--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:
``(1) A notification that the medical debt--
``(A) may not be included on a consumer report made
by a consumer reporting agency until the later of the
date that is 365 days after--
``(i) the date on which the person sends
the statement;
``(ii) with respect to the medical debt of
a borrower demonstrating hardship, a date
determined by the Director of the Bureau; or
``(iii) the date described under section
605(a)(10); and
``(B) may not ever be included on a consumer report
made by a consumer reporting agency, if the medical
debt arises from a medically necessary procedure.
``(2) A notification that, if the debt is settled or paid
by the consumer or an insurance company before the end of the
period described under paragraph (1)(A), the debt may not be
reported to a consumer reporting agency.
``(3) A notification that the consumer may--
``(A) communicate with an insurance company to
determine coverage for the debt; or
``(B) apply for financial assistance.''.
(b) Furnishing of Medical Debt Information.--Section 623 of the
Fair Credit Reporting Act (15 U.S.C. 1681s-2), as amended by subsection
(a), is further amended by adding at the end the following:
``(g) Furnishing of Medical Debt Information.--
``(1) Prohibition on reporting debt related to medically
necessary procedures.--No person shall furnish any information
to a consumer reporting agency regarding a debt arising from a
medically necessary procedure.
``(2) Treatment of other medical debt information.--With
respect to a medical debt not described under paragraph (1), no
person shall furnish any information to a consumer reporting
agency regarding such debt before the end of the 365-day period
beginning on the later of--
``(A) the date on which the person sends the
statement described under subsection (f) to the
consumer;
``(B) with respect to the medical debt of a
borrower demonstrating hardship, a date determined by
the Director of the Bureau; or
``(C) the date described in section 605(a)(10).
``(3) Treatment of settled or paid medical debt.--With
respect to a medical debt not described under paragraph (1), no
person shall furnish any information to a consumer reporting
agency regarding such debt if the debt is settled or paid by
the consumer or an insurance company before the end of the 365-
day period described under paragraph (2).
``(4) Borrower demonstrating hardship defined.--In this
subsection, and with respect to a medical debt, the term
`borrower demonstrating hardship' means a borrower or a class
of borrowers who, as determined by the Director of the Bureau,
is facing or has experienced unusual extenuating life
circumstances or events that result in severe financial or
personal barriers such that the borrower or class of borrowers
does not have the capacity to repay the medical debt.''.
SEC. 5. EFFECTIVE DATE.
This Act and the amendments made by this Act shall take effect on
the date that is 180 days after the date of enactment of this Act.
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