Bill aims to combat credit reporting on medical debt

A bill introduced by U.S. Sen. Jeff Merkley (D-OR) on May 21 would amend 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) appear as cosponsors of the bill.

S.1581 would amend the FCRA to institute a one-year waiting period before medical debt will be reported on a consumer’s credit report and to remove paid-off and settled medical debts from credit reports that have been fully paid or settled.

The bill would also amend the FDCPA to provide a timetable for verification of medical debt and to increase the efficiency of credit markets with better information.

S.1581 was read twice and referred to the Senate Banking, Housing, and Urban Affairs committee.

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