The bill H. 4149 introduced in the South Carolina General Assembly aims to protect consumers from the negative impacts of medical debt by prohibiting creditors and debt collectors from reporting consumer debt that arises from services rendered at South Carolina medical facilities. Specifically, the bill adds a new section, 37-5-120, to the South Carolina Code of Laws, which defines key terms such as "consumer," "consumer report," "consumer reporting agency," "creditor," "debt collector," and "South Carolina medical facility."

Under this new provision, not only are creditors and debt collectors barred from reporting such medical debt to consumer reporting agencies, but consumer reporting agencies themselves are also prohibited from including this type of debt on consumer reports. This legislation is designed to alleviate the financial burden on individuals who may struggle with medical expenses and to ensure that their credit reports are not adversely affected by debts incurred from necessary medical services. The act will take effect upon approval by the Governor.

Statutes affected:
03/05/2025: 37-5-120
Latest Version: 37-5-120