Bill aims to combat credit reporting on medical debt

Proposed Bill S.1581: Changes to FCRA and FDCPA for Better Credit Reporting

  • On May 21, U.S. Sen. Jeff Merkley (D-OR) introduced a bill proposing amendments to the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA). U.S. Sens. Richard Blumenthal (D-CT), Elizabeth Warren (D-MA), Robert Menendez (D-NJ), and Richard J. Durbin (D-IL) cosponsored the bill.The bill, designated as S.1581, aims to bring about significant changes to the FCRA. One of its provisions entails the establishment of a one-year waiting period before medical debt can appear on a consumer’s credit report. Moreover, it seeks to remove paid-off and settled medical debts from credit reports once they have been fully paid or settled.

    Additionally, S.1581 strives to amend the FDCPA by introducing a specific timetable for verifying medical debt. It also intends to enhance the efficiency of credit markets by providing improved information.

    After its introduction, S.1581 underwent an initial reading. It received a referral to the Senate Banking, Housing, and Urban Affairs committee for further consideration. These proposed amendments represent efforts to tackle issues related to medical debt reporting and debt collection practices in the United States.


In conclusion, Senator Jeff Merkley’s introduced bill, S.1581, seeks to make significant amendments to the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA). If passed, it could have a positive impact on how medical debt is reported and managed on consumer credit reports. Stay informed about these potential changes and their implications for credit reporting.

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