TRENTON, NJ – The Senate Commerce Committee has advanced Senate Bill No. 2428 with favorable remarks and amendments. This legislative move aims to address the issue of medical debt reporting by medical creditors to credit reporting entities.
The bill, as amended, seeks to protect consumers from the negative impacts of having medical debt reported to credit bureaus, agencies, or data collection facilities. Specifically, it defines a “medical creditor” as any health care provider or entity to whom a consumer owes money for health care services, including those who purchase debts arising from health care services.
Introduced by Senator Richard J. Codey, representing Essex and Morris counties, and Senator Nellie Pou, representing Bergen and Passaic counties, the bill underscores the significant issue of medical debt in the credit reporting system. If enacted, it would supplement existing consumer protection laws, marking a significant step towards safeguarding consumers’ financial health against the adverse effects of medical debt reporting.