With the lawsuits to invalidate the Consumer Financial Protection Bureau’s (CFPB) medical debt reporting advisory opinion finalized and no plans to reissue the advisory opinion, Democratic lawmakers in the House of Representatives and the Senate have introduced the Medical Debt Relief Act of 2025. The bills, S. 2519 and H.R. 4827, would ban medical debt from appearing on consumer credit reports and prohibit creditors from using it when making lending decisions.
While several states have passed or have bills working to prohibit medical debt credit reporting, this is the first time national legislation has been attempted. If passed, the Medical Debt Relief Act of 2025 would:
- Amend the Fair Credit Reporting Act (FCRA) to exclude all medical debt from consumer credit reports—even if placed for collection, charged off, or otherwise deemed delinquent.
- Prohibit creditors from accessing or using medical debt information when making credit decisions.
- Direct the CFPB to finalize these regulations within one year of enactment.
The bills were introduced in late July 2025 and have been referred to the Senate Committee on Banking, Housing, and Urban Affairs, and the House Committee on Financial Services respectively. Americollect will continue to monitor the Medical Debt Relief Act of 2025 and the bills as they are taken up within their respective chambers.
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