H.R. 9890 (IH) – Reporting Medical Debt Payments as Positive Consumer Credit Information Act of 2024
Summary:
H.R. 9890, introduced by Representative Ayanna Pressley (D-MA), aims to address the negative impact of medical debt on credit scores by requiring credit reporting agencies (CRAs) to report medical debt payments as positive consumer credit information.
Key Provisions:
- Reporting Medical Debt Payments: CRAs must report medical debt payments made on time or within 60 days of the due date as positive consumer credit information.
- Dispute Process: Consumers have the right to dispute medical debt reporting errors and have them corrected or removed from their credit reports.
- Timeframe: The bill applies to medical debts incurred on or after January 1, 2025.
Background:
Medical debt is a significant financial burden for many Americans, with an estimated 100 million adults having medical debt in collections. Medical debt can have a severe negative impact on credit scores, making it difficult for individuals to access loans, housing, and other financial products.
Bill’s Supporters:
Proponents argue that the bill:
- Improves Credit Scores: By reporting medical debt payments as positive information, the bill will help boost credit scores and reduce the negative impact of medical debt.
- Protects Consumers: The bill creates a dispute process to ensure that consumers can correct errors and prevent unfair reporting.
- Promotes Health Equity: The bill recognizes that medical debt disproportionately affects communities of color and low-income Americans.
Bill’s Opponents:
Opponents argue that the bill:
- Could Lead to Higher Interest Rates: By making medical debt more accessible to lenders, the bill could lead to higher interest rates on medical loans.
- Does Not Address Underlying Issues: The bill does not address the root causes of medical debt, such as high healthcare costs and lack of insurance coverage.
- Could Encourage Unnecessary Medical Spending: The bill could incentivize individuals to take on more medical debt if they know their payments will improve their credit scores.
Current Status:
H.R. 9890 was introduced in the House of Representatives on July 17, 2023, and is currently in the Financial Services Committee. The bill has not yet been voted on by the full House.
H.R. 9890 (IH) – Reporting Medical Debt Payments as Positive Consumer Credit Information Act of 2024
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