The Ohio Medical Debt Fairness Act seeks to reform the handling of medical debt by introducing several key provisions aimed at protecting consumers. It limits the interest rate on medical debt incurred after the effective date of the amendment to a maximum of three percent per annum and prohibits the reporting of such debt to consumer reporting agencies. This measure is designed to prevent individuals from facing negative impacts on their credit reports due to unpaid medical expenses. Additionally, the bill establishes that no health care provider or collection agency can report nonpayment of medical debt incurred after the effective date, allowing consumers to initiate civil actions if their debt is reported in violation of this provision.

The legislation also introduces new definitions related to medical debt and garnishment, ensuring that no garnishment proceedings can be initiated for medical debt incurred after the effective date. It outlines provisions for debt scheduling agreements between consumers and credit services organizations, stipulating that creditors are considered to have entered into these agreements unless they formally object within a specified timeframe. Furthermore, the bill revises the definition of a "credit services organization" by changing the criteria for removing adverse credit information from "accurate and not" to "inaccurate or obsolete." Overall, the Ohio Medical Debt Fairness Act aims to create a more equitable framework for managing medical debt and enhance consumer protections against adverse credit reporting practices.

Statutes affected:
As Introduced: 1343.01, 1343.03, 1349.01, 2716.02, 2716.03, 4712.01