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 negative impacts on consumers' credit reports due to medical debts that arise from necessary healthcare services. The bill also clarifies the definition of "medically necessary debt," specifying that it includes debts related to healthcare services for diagnosing, treating, or preventing illnesses, injuries, or conditions.

Additionally, the bill modifies existing provisions related to the reporting of other types of debts and judgments, maintaining the seven-year reporting limit for various financial and legal matters. The changes will take effect on September 1, 2025, and will only apply to consumer reports furnished on or after that date, ensuring that reports generated before this date will still adhere to the previous regulations. Overall, this legislation seeks to provide greater financial security for consumers by limiting the negative repercussions of medical debt on their credit histories.

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