The bill seeks to enhance consumer protection against the negative impacts of medical debt by introducing new regulations on how such debts are reported to credit agencies. It expands the definition of "medical debt" to encompass a wider range of healthcare-related obligations and establishes that any medical debt is void and unenforceable if reported to a credit agency, unless the debt contract explicitly prohibits such reporting. Additionally, it mandates that contracts creating medical debt must include specific language that prohibits reporting to credit agencies; failure to comply renders the debt void and unenforceable. Violations of these provisions are classified as unfair or deceptive acts under the state's consumer protection laws.

Moreover, the bill imposes further requirements on debt collectors, including the obligation to provide detailed information about debts upon request and a prohibition on reporting medical debt to credit agencies until at least 180 days after the original obligation is received. It also outlines unlawful practices for debt collectors, such as misrepresenting debts and threatening illegal actions, thereby promoting transparency and fairness in debt collection. Overall, the legislation aims to protect consumers from aggressive collection tactics and ensure they are well-informed about their rights and obligations regarding medical debt.

Statutes affected:
Original Bill: 19.16.100, 19.182.040, 70.41.400, 70.54.005