OLYMPIA, Wash. — The Washington State Senate has approved a measure that would remove medical debt from credit score reporting.
The measure, introduced in late January, declares a medical debt “void and unenforceable if it is reported to a consumer credit reporting agency or credit bureau,” saying that reporting is a violation of the Consumer Protection Act.
The Consumer Protection Act, established in 1961, prohibits “unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce, contracts, or conspiracies that restrain trade or commerce, and monopolies.”
“Folks in my district have concerns about rising costs, especially health care costs. The cost of treating chronic illness or an emergency room visit are overwhelming, forcing people into medical debt — the number one cause of bankruptcy in America,” said WA Sen. Marcus Riccelli (D-Spokane). “Nearly one in three families in Washington have someone struggling with medical debt. No one chooses to get sick or have a medical emergency, but medical debt affects credit scores, which can make it difficult to get a car or home loan, rent an apartment, or find a job.”
A similar rule finalized in January by the Consumer Financial Protection Bureau has been paused.
“No one should have to endure financial ruin to seek life-saving care, especially when so many Washingtonians are struggling with affordability issues,” Riccelli said.
The bill now moves to the House of Representatives for consideration.
The Washington State Senate approved a measure to remove medical debt from credit score reporting on a bipartisan vote Wednesday.
Senate Bill w, sponsored by Sen. Marcus Riccelli (D-Spokane), would protect consumers by prohibiting collection agencies and other entities from reporting medical debt to consumer credit agencies or bureaus.
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