H.R. 2537House117th Congress (2021-2023)In Committee

Consumer Protection for Medical Debt Collections Act

Introduced April 14, 2021

AI-Generated Summary

Updated February 8, 2026 at 1:37 AM UTC

The Consumer Protection for Medical Debt Collections Act changes the Fair Debt Collection Practices Act and the Fair Credit Reporting Act to give consumers more protection from medical debt. It defines “medical debt,” stops collectors from trying to collect it for two years after the first payment is due, and limits how credit agencies can report such debt. The bill also requires lenders to give borrowers notice about these reporting rules and to inform them of options for insurance or financial assistance. It mainly affects debt collectors, credit reporting agencies, and consumers who owe medical bills.

Key Provisions

  • Adds a definition of “medical debt” to the Fair Debt Collection Practices Act.
  • Prohibits debt collectors from attempting to collect medical debt until two years after the first payment due date.
  • Defines “medically necessary procedure” and adds a definition of medical debt to the Fair Credit Reporting Act.
  • Bars consumer reporting agencies from reporting any debt arising from medically necessary procedures, and delays reporting of other medical debt for at least 365 days after a required notice or hardship determination.
  • Requires furnishers of medical debt information to send consumers a notice explaining the reporting delay, that settled or paid debts won’t be reported, and that they can seek insurance coverage or financial assistance.
  • Sets the law’s effective date to 180 days after enactment.

Legislative Activity

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1 earlier action
HouseIntro Referral Latest Action

Referred to the House Committee on Financial Services.

April 14, 2021

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HouseIntro Referral

Introduced in House

April 14, 2021

HouseIntro Referral

Referred to the House Committee on Financial Services.

April 14, 2021

Floor Debate

8 members

What members said about H.R. 2537 on the floor

5 Republicans3 Democrats
Ed Perlmutter
Rep. Ed PerlmutterD-CO-7 · May 12, 2021

Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 380 and ask for its immediate consideration. Mr. Speaker, for the purposes of debate only, I yield the customary 30…

Guy Reschenthaler
Rep. Guy ReschenthalerR-PA-14 · May 12, 2021

Mr. Speaker, I yield myself such time as I may consume. I want to thank the distinguished gentleman, my good friend from Colorado, for yielding me the customary 30 minutes. The rule before us today…

Don Bacon
Rep. Don BaconR-NE-2 · May 12, 2021

Mr. Speaker, I rise to urge defeat of the previous question so that we can immediately consider my bill to ensure that those who risk their lives to protect all of us are afforded greater protections…

John H. Rutherford
Rep. John H. RutherfordR-FL-4 · May 12, 2021

Mr. Speaker, I thank the gentleman for yielding. Mr. Speaker, I rise to urge defeat of the previous question so that we can immediately consider the Protect and Serve Act, my bipartisan bill to…

Lois Frankel
Rep. Lois FrankelD-FL-21 · May 12, 2021

Mr. Speaker, I thank the chairman for yielding to me. Mr. Speaker, give me a break. Since when is having babies a liberal activity? In fact, I believe that police women have babies, too. And let me…

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Troy E. Nehls
Rep. Troy E. NehlsR-TX-22 · May 12, 2021

Mr. Speaker, I rise in support of the Back the Blue Act, the Serve and Protect Act, and the Jaime Zapata and Victor Avila Federal Law Enforcement Protection Act. Mr. Speaker, all of these are…

Marjorie Taylor Greene
Rep. Marjorie Taylor GreeneR-GA-14 · May 12, 2021

The Pregnant Workers Fairness Act, I rise in opposition to H.R. 1065. There is language that I find many Democrats use in a lot of Democrats' bills. It is called pregnancy rights. Pregnancy rights…

Deborah K. Ross
Rep. Deborah K. RossD-NC-2 · May 12, 2021

Mr. Speaker, debt collectors often operate with impunity, threatening servicepeople, denying small business owners due process, and harassing customers and homeowners with repeated calls, texts, and…

Bill Text

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Introduced in HouseIssued April 14, 2021

I

117th CONGRESS

1st Session

H. R. 2537

IN THE HOUSE OF REPRESENTATIVES

April 14, 2021

Ms. Tlaib 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 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.

1.

Short title

This Act may be cited as the Consumer Protection for Medical Debt Collections Act.

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.

.

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.

.

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.

.

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.