State advocates seeking to remove medical debts from credit reports face a new landscape that threatens to undo their work. State laws and bills to ban medical debt credit reporting may need to be modified to protect against a now-hostile federal administration that may attempt to preempt them. This policy brief provides two suggestions to “preemption proof” state laws prohibiting medical debt credit reporting.
- A provision that prohibits lenders, employers, landlords, and other users from considering medical debt on credit reports in their decision making.
- A requirement that healthcare providers include in their contracts with debt collectors a provision that prohibits the debt collectors from furnishing medical debts to a CRA.
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