[Congressional Record Volume 156, Number 133 (Wednesday, September 29, 2010)]
[Extensions of Remarks]
[Page E1791]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    MEDICAL DEBT RELIEF ACT OF 2010

                                 ______
                                 

                               speech of

                         HON. LAURA RICHARDSON

                             of california

                    in the house of representatives

                      Tuesday, September 28, 2010

  Ms. RICHARDSON. Mr. Speaker, I rise today in support of H.R. 3421, 
the ``Medical Debt Relief Act of 2010,'' which would address the issue 
of medical debt and the crippling effect that such debt can have on an 
individual's credit report, even long after it has been paid off. This 
bill will right an injustice in the credit scoring industry that 
unfairly penalizes thousands of families across the country.
  I thank Chairman Frank for his leadership in bringing this bill to 
the floor. I also thank the sponsor of this legislation, Congresswoman 
Kilroy, for her attention to this important issue.
  Mr. Speaker, in 2007, over 28 million Americans were contacted by 
debt collections agencies regarding medical debt. Unlike other forms of 
debt, however, individuals do not choose when to take on medical debt. 
The nature of serious illness is such that it often comes when we least 
expect it. Many people develop from low credit scores simply because 
they were forced to assume large amounts of medical debt when they did 
not expect it and were, thus, financially unprepared to do so. 
Unfortunately, these individuals' credit scores often remain low long 
after their debt has been paid off, and in some cases for the rest of 
their lives. This is an unfair penalty for individuals who have done 
nothing wrong.
  H.R. 3421 will correct this problem by inserting a clause into the 
Fair Credit Reporting Act that to eliminate medical debt from credit 
reporting within 3o days of the debt being fully paid off. Credit 
reports are an important tool for leasers, lenders, and many other 
industries. This bill will ensure that credit reports reflect 
individuals' actual credit-worthiness, rather than providing an 
artificially low-score that is dragged down by medical debt from the 
past.
  I urge my colleagues to join me in supporting this H.R. 3421.

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