This bill amends Section 395.3011 of the Florida Statutes to enhance protections for individuals facing medical debt. It revises the definition of "extraordinary collection action" and introduces new terms such as "medical debt collector" and "medical debt creditor." The bill prohibits medical debt creditors and collectors from engaging in various aggressive collection practices, including threats of arrest, garnishment of wages, and foreclosure on property. Additionally, it establishes that medical debt creditors must enter into legally binding agreements with collectors that limit interest charges and ensure that debtors are not overcharged, particularly if they qualify for financial assistance.

Furthermore, the bill sets a cap on interest rates for medical debt at 2 percent per annum, with specific provisions that debtors eligible for financial assistance cannot be charged any interest or late fees. The interest rate cap also applies to judgments related to medical debt. The act is set to take effect on July 1, 2026, aiming to provide a more equitable framework for managing medical debt and protecting consumers from predatory collection practices.

Statutes affected:
S 1222 Filed: 395.3011