Medical Debt Responsibility Act of 2011 would improve credit scores, stimulate the economy
Washington, DC --- Today U.S. Representative Heath Shuler introduced the Medical Debt Responsibility Act of 2011, H.R. 2086, with the support of three bipartisan cosponsors. The bill would require credit agencies to remove paid or settled medical debt up to $2,500 per collection from credit reports within 45 days.
“Small amounts of medical debt cause huge credit problems for millions of responsible, hard-working Americans who have suffered an illness or accident,” said Rep. Heath Shuler. “This legislation is a win for consumers and the economy. By keeping cleared medical debt off of credit reports, this bill will allow more Americans to have the credit score they deserve and need to buy homes and stimulate economic growth in their communities.”
Currently, medical debt that has been paid or settled can remain on consumer credit reports for up to seven years. Unlike other types of debt, medical debt is quickly sent to collection and prone to error. An estimated 44 million Americans under the age of 65 have medical debt or medical bills being paid off over time, a third of which can be attributed to a billing mistake.
“Medical debt is not a reliable indicator of credit risk, yet nearly a quarter of Americans have seen their credit scores plummet because of small, routine medical bills,” said Rep. Nydia Velazquez (D-NY), Ranking Member of the House Small Business Committee an and original cosponsor of H.R. 2086.“This bill provides a commonsense, simple solution to address this problem now and protect consumers in the future.”
"I am pleased to be a sponsor of the Medical Debt Responsibility Act,” said Rep. Ralph Hall (R-TX). “This bill, which costs the taxpayer nothing to implement, is a bipartisan effort that recognizes the difficulties and inconsistencies relating to medical debt. At a time when our economy is unstable, this is a small but important step to bolstering financial certainty for Americans.”
H.R. 2086 is expected to be reviewed in the House Committee on Financial Services.
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