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 aims to ensure that individuals who have incurred medical debt for necessary health care services are not unfairly penalized in their credit reports. The bill also clarifies the definition of "medically necessary debt," specifying that it includes debts arising from health care services aimed at diagnosing, treating, or preventing illnesses.

Additionally, the bill modifies existing provisions related to the reporting of other types of debts, such as bankruptcy cases, judgments, tax liens, and criminal records, by maintaining the time limits for reporting these items. 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.

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