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S 2519119th CongressIn Committee
Medical Debt Relief Act of 2025
Introduced: Jul 29, 2025
Sponsor: Sen. Merkley, Jeff [D-OR] (D-Oregon)
HealthcareSocial Services
Standard Summary
Comprehensive overview in 1-2 paragraphs
The Medical Debt Relief Act of 2025 aims to remove medical debt from the credit reporting and credit decision processes. It defines “medical debt” as debt arising from medical services, products, or devices, and places explicit protections so that such debt cannot be reported as adverse information on consumer reports or used by creditors when deciding whether to extend credit. The bill also requires the Consumer Financial Protection Bureau (CFPB) to update regulations within one year to ensure creditors are prohibited from obtaining or using medical debt information in credit decisions. In short, the act seeks to prevent medical debt from harming a consumer’s credit score or access to credit.
Key Points
- 1Definition: Adds a clear definition of “medical debt” to cover debt arising from medical services, products, or devices.
- 2Exclusion from adverse information: Bans inclusion of medical debt as adverse information on consumer reports, including debts in collection, charged-off, or similarly handled.
- 3Technical amendments: Modifies related FCRA provisions to remove or neutralize references to medical debt in the reporting framework, ensuring medical debt is not treated as reportable adverse information.
- 4Regulatory action: Requires CFPB to amend regulations within one year to bar creditors from obtaining or using medical debt information when deciding whether to extend credit.
- 5Scope of impact: Applies to consumer reports and credit decisions, but does not erase the debt itself; it shields individuals from medical debt affecting creditworthiness.
Impact Areas
Primary group/area affected: Consumers with medical debt and those whose credit reports would otherwise reflect such debt; would likely improve credit scores and access to credit for many affected individuals.Secondary group/area affected: Credit reporting agencies (e.g., the major bureaux) and debt collectors; lenders and creditors who rely on consumer credit information.Additional impacts: Could influence credit scoring models and lending practices; regulatory compliance costs and administrative changes for furnishers and scorers; potential shifts in how medical debt is managed and collected. It is introduced legislation and would only take effect if enacted into law.
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