Accuracy in Reporting Medical Debt Act of 2013 - Amends the Fair Debt Collection Practices Act to prohibit debt collectors, during a 120-day period, from reporting a medical debt (arising from the receipt of medical services, products, or devices) to any consumer reporting agency if the consumer, within a specified timeframe, disputes the validity of such debt through a written statement that the consumer is: (1) continuing to communicate with an insurance company to determine coverage for the debt, (2) disputing the amount or existence of the debt, or (3) awaiting a determination on an application for financial assistance when the consumer provides evidence of such application.
Prohibits this Act from having any effect on when a debt collector may engage in activities to collect or attempt to collect any debt owed or due or asserted to be owed.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2211 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 2211
To amend the Fair Debt Collection Practices Act to provide for a
timetable for verification of medical debt and to increase the
efficiency of credit markets with more perfect information.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 24, 2013
Mr. Gary G. Miller of California (for himself and Mrs. McCarthy of New
York) introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Fair Debt Collection Practices Act to provide for a
timetable for verification of medical debt and to increase the
efficiency of credit markets with more perfect information.
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 ``Accuracy in Reporting Medical Debt
Act of 2013''.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) A reduction in a consumer's credit score can impede
consumers' economic activity and consumer borrowing capacity.
(2) A 2012 Federal Trade Commission report found that as
many as 40 million Americans have mistakes on their credit
report.
(3) According to credit evaluators, medical debt
collections are inconsistently reported, and of questionable
value in predicting future payment performance.
(4) Medical debt that has been completely paid off or
settled will remain on a consumer's credit report and can
significantly damage a consumer's credit score for 7 years.
(5) Creditworthy consumers may be denied credit, pay higher
interest rates, or pay higher fees when buying or refinancing a
home loan or obtaining credit for credit-related products due
to disputed medical debt on their credit reports.
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) Disputes the validity.--With respect to a
medical debt, a consumer disputes the validity of such
debt if the consumer states, in writing, that either--
``(i) the consumer is continuing to
communicate with an insurance company to
determine coverage for the debt;
``(ii) the consumer disputes the amount or
existence of the debt; or
``(iii) the consumer has applied for
financial assistance, provides evidence of such
application, and is awaiting a determination.
``(C) Medical debt.--The term `medical debt' means
a debt arising from the receipt of medical services,
products, or devices.
``(2) Notice of specific deadline.--When sending a
statement described under subsection (a)(3), the debt collector
shall include the following information:
``(A) That the debt collector could report to a
consumer reporting agency regarding the debt, if the
consumer does not respond to the notice within 30 days
from the date on which the consumer received the
statement.
``(B) That, if the consumer does respond, the debt
collector could report to a consumer reporting agency
regarding the debt at the end of the 120-day period
beginning on the date that the debt collector sends the
statement.
``(C) The specific date that is the end of the 120-
day period beginning on the date that the debt
collector sends the statement.
``(3) Effect of consumer notice.--If the consumer notifies
the debt collector, in writing, within the 30-day period
described under subsection (a), that the consumer disputes the
validity of the debt, the debt collector may not, during the
120-day period beginning on the date that the debt collector
sends the written notice described under subsection (a),
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 120-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 120-day
period.''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect after the end of the 6-month period beginning on the date
of the enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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