Law Enacted to Prohibit Credit Reporting of Medical Debts
Governor Hochul signed a bill S.4907 (nyassembly.gov) into law this week that would prohibit the reporting of a patient medical debt to a credit reporting agency, as well as prohibiting credit reporting agencies from collecting such information. The law takes effect immediately.
This is a part of a national trend limiting credit reporting of medical debts. Colorado recently enacted a similar law. Moreover, earlier this year, three major credit reporting agencies (TransUnion, Equifax and Experian) announced medical debt| AP News that they would voluntarily stop collecting consumer medical debts less than $500. The Consumer Protection Financial Board also has proposed a rulemaking to prohibit credit report collection of medical debt.
