H.B. No. 2478 amends Section 20.05 of the Business & Commerce Code to enhance consumer protections regarding the reporting of medically necessary debt on consumer reports. The bill prohibits consumer reporting agencies from including information about medically necessary debt, regardless of when the debt was incurred, in consumer reports. This addition is significant as it aims to prevent the negative impact of such debts on consumers' credit reports, particularly when the debt arises from medical services that meet accepted standards of care.

Additionally, the bill clarifies the definition of "medically necessary debt," specifying that it includes debts related to health care services for diagnosing, treating, or preventing illnesses, injuries, or conditions. The amendments also retain existing provisions regarding the reporting of other types of debts and judgments, ensuring that the law continues to provide a framework for consumer reporting while addressing the specific needs related to medical debt. The changes will take effect on September 1, 2025, and will apply only to consumer reports furnished on or after that date.

Statutes affected:
Introduced: Commerce Code 20.05 (Commerce Code 20)