The bill amends the General Laws to enhance consumer protections regarding medical debt by introducing new definitions and limitations. It adds a new section, 6-13.1-20, which defines "credit report" and "medical debt," clarifying that a credit report does not include information solely related to transactions between a consumer and a healthcare provider for medical debt. Additionally, it modifies Section 9-25-3 to prohibit the filing of executions against a defendant's principal residence for judgments based on medical debt, and it reiterates the definition of medical debt in this context. The bill also amends Section 10-5-2 to prevent attachments against a defendant's principal residence in cases related to medical debt, aiming to protect consumers from losing their primary residences due to such judgments.
Moreover, the bill introduces provisions regarding wage garnishment, stating that no garnishment shall be issued against a defendant for judgments based on medical debt, which is defined as obligations owed for healthcare services, products, or devices. It clarifies that garnishments for child support will take precedence over other garnishments and modifies existing language to ensure that only amounts exceeding legally exempt wages can be garnished. Employers are mandated to withhold sums until the judgment amount is satisfied and may charge a fee for processing garnishments. The act is set to take effect on January 1, 2026, and aims to mitigate the adverse effects of medical debt on consumers' financial standing and credit reporting.
Statutes affected: 169: 6-13.1-20, 9-25-3